HomeMy WebLinkAbout2007/04/17 Item 15
~V~
-.-
.-- ---
~-::E~~
Mayor and City Council
City Of Chula Vista
276 Fourth Avenue
Chula Vista, Ca 91910
619.691.5044 - 619.476.5379 Fax
MEMO
CIlY OF
CHUlA VISTA
Thursday, April 12, 2007
TO:
Members of the City Council
Independent Financial Review subcommitte~
Overview ofEPS Independent Financial Review
FROM:
RE:
The financial structure of the City of Chula Vista is in transition. Opinions have been expressed
as to the nature of the city's current financial status, the reasons for reaching this point, and
direction to guide future actions. An independent financial review is an appropriate mechanism
for an objective look at budget imbalances and to help the City Council and staff establish a
sustainable basis for future budgets.
With City Council concurrence, Mayor Cox and Councilmember Steve Castaneda formed an
Independent Financial Review Subcommittee, through which a Request for Proposal to complete
the specified scope of work was issued on January 4, 2007. The Council approved the final
consultant selection and the scope of work on February 6, 2007. Economic & Planning Systems,
Inc. (EPS) was selected and began working with City staff in March.
The scope of work was broad, the time frame to complete the effort within 60 days was
aggressive and the budget was limited to $40,000. EPS analyzed existing data, and identified
high level policy issues and offered recommendations for future action.
The attached report is offered by the Council Subcommittee to the City Council for discussion.
Its contents have implications for next fiscal year's budget decision making. It identifies areas
where financial management can be strengthened. Importantly, the consultant concluded that the
fiscal sustainability and well-being of Chula Vista depend on the City Council:
. Fully recognizing revenue limitations and risks,
. Achieving economic development objectives,
. Establishing clear expenditure priorities, and
. Balancing decisions regarding capital improvements, staffing levels and compensation,
and services against conservative revenue forecasts.
Following the consultant's presentation and the City Council discussion on April 17, 2007, the
Subcommittee will work with the consultant to bring back a final version in two or three weeks
I
15-1
for the City Council's acceptance of the report. The Subcommittee anticipates that the City will
consider the report's findings and recommendations as budget policies are set for 2007-08.
2
15-2
Economic &
Planning Systems
Puui;.. Fjn<Jtlu'
Rei)! E.'ul.Jr E(mJOttlj,'~
RfgiM;,;f r(~IIMtllr.<
Land l..',,, Polin'
CHULA VISTA INDEPENDENT FINANCIAL REVIEW
Prepared for:
City of Chula Vista
Prepared by:
Economic & Planning Systems, Inc.
April 2007
EPS #17006
BE R K E LEY
SAC RAM E 1\1 T 0
DEN V E R
::'5i.'j :\inrh:;rfc'd Suire-20r;
nll:'nc; ~1(Hq,. '!')0
f,l.' 51;J .~,! .'i~(,:'<
phon~ 'i] ,;.',4')-2;'
(a~ I {;-\'4'i--2'l7u
ph"",'; ., I'.l.'>;:'; i~' ~
fot.\ :'13_62.<"'".1'''
.Be,'kele::, ,-'-; 'i~7,;;-::)!5
,\-ww."'lH\'~.~('rn
15-3
TABLE OF CONTENTS
I. INTRODUCTION .................................... ..... ............................. ....................................1
II. BACKGROUND.. ................... ..................................................... .................................. 2
III. FINDINGS.................................................................................................................... 3
Financial Condition.................................................................................................. 3
Financial Management ...... ........................................................................ ...............5
Financial Forecast..................................................................................................... 6
Implications of Future Development ......................................................................9
Capital Investments and Related Maintenance Obligations ...............................12
Tax Increment Financing........................................................................................ 13
Retirement Liabilities............................................................................................. 16
IV. STRENGlHENING CHULA VISTA'S FINANCIAL CONDmON .....................................18
BIBLIOGRAPHY
ApPENDIxA: BACKGROUND DATA
15-4
LIST OF FIGURES AND TABLES
Figure 1:
Figure 2:
Table 1:
Table 2:
Table 3:
General Fund Revenues and Expenditures ......................................................3
General Fund Revenues and Expenditures (Projected)...................................7
Chula Vista Residential Development Capacity .............................................. 9
Additions to City Assets ..................................................................................12
PERS Required Contribution Rates (1) ...........................................................17
15-5
I. INTRODUCTION
This independent financial review provides the City of Chula Vista with a set of findings
and a related set of recommendations intended to address the current budget imbalance
and to establish a sound and sustainable basis for future budgets. The financial review
is focused upon determining the magnitude of the current budget problem and
illuminating the factors that may have led to the current situation. This independent
review is based upon a thorough review of prior City budgets, annual audits, and
related financial information. The financial review also considered financial information
and strategic plans provided by individual departments.
The City of Chula Vista is a vital, growing city located in the southern portion of the San
Diego metropolitan region and covers about 50 square miles. The City is home to more
than 220,000 people, marking it as the second largest city in San Diego County. The City
has grown dramatically in recent years; in 2003, the Census Bureau identified Chula
Vista as the seventh fastest growing city in the United States. Since 1990, the population
grew at an average compounded rate of four percent annually. Recent trends indicate a
slowing of this growth rate linked to the downturn in the housing market. Longer term
prospects are sound - there remains substantial development capacity and regional
economic trends are favorable.
The City's Budget has also grown substantially reflecting an ongoing effort to maintain
and improve service standards and quality of life for the growing population. The
City's municipal service standards are equal to or better than those of comparable cities
in the State. The City's Growth Management Ordinance requires that these service
standards be maintained or improved as the City grows. The approximately $170
million annual budget provides for a broad range of public services including general
government, public works, police and fire, planning and building, community
development, recreation and library. Staffing levels have generally grown proportionate
to population growth in recent years. Major new construction of public facilities and
infrastructure has occurred in recent years, funded in large part by impact fees but also
relying upon general revenue sources as well. New facilities have included a new police
station, a major renovation of the Civic Center complex, three fire stations, new city
parks and three recreation centers, an animal shelter, a new corporation yard, and a
significant amount of new road infrastructure improvements. The City is also
undertaking redevelopment activities along its Bayfront, in the downtown, area and
along older commercial corridors.
As the City transitions from a sustained period of high growth and development to a
more stable level, it faces many transitional issues. Slowing revenue growth and
continued cost growth create a significant set of challenges, compounded by current
budget conditions, to achieving a fiscally sustainable city. While there are existing and
future challenges to be faced, the prospects for the City are very sound given regional
market conditions, local development opportunities, the extensive capital investments
that have been made, and the capabilities of City staff.
1
P: \ 17000$ \ 17006ChulaFinRvw IRcpart \ 17006rpl5.doc
15-6
II. BACKGROUND AND ApPROACH
Following years of steady growth in municipal revenues and expenditures Chula Vista
has encountered a period of fiscal stress, evidenced by increasing difficulty in balancing
the budget in the past few years. Approaching the 2007-08 fiscal year, revenues
continue to fall short of expenditures requiring further draws on reserves and reductions
in expenditures.
In view of these difficulties, the City Council commissioned this independent financial
review to shed light on the causes of the current problems, offer recommendations that
address the current problem, and establish a sustainable approach to budgeting in the
future. Specifically, the request for proposals for the independent financial review
highlighted eight desired results:
.
A summary of the current approach used by the City in managing its finances.
.
A review of the current state of the City's financial condition.
.
A determination of the most pressing factors on the City's financial condition in the
five and ten-year time horizons.
.
A discussion of the financial implications of major development including continued
residential development and revitalization and redevelopment projects.
.
A review of capital, infrastructure and maintenance commitments and spending.
.
A review of past and current use and capability of tax increment financing.
.
An assessment of the financial implications of unfunded retirement system
liabilities.
.
Recommendations for strengthening Chula Vista's financial condition.
The independent financial review has consisted of an intensive review of financial
documents provided by the City, a detailed evaluation of fiscal (costs and revenue)
trends, consideration of market trends and circumstances, a formal workshop with key
City management and departmental staff involved in budget making, and selected
interviews with key City staff members. The findings and recommendations included in
this independent financial review are entirely the opinion of the consultant, based upon
the technical analysis conducted.
2
P:\17DOOs\17006ChulaFinRvw\Repw/\17006rpl5.doc
15-7
III. FINDINGS
During the last decade, the City of Chula Vista has successfully managed a very rapid
growth rate, requiring a substantial effort involved with planning, administering, and
investing in necessary infrastructure and expansion of municipal services.
It has long been recognized that growth itself was generating substantial direct (e.g.,
service charges and fees) revenues that would subside along with development, both
cyclically and as the community approaches "buildout". However, it has also been
assumed that the more stable revenue base of the City, including property taxes and
sales taxes, would also grow and eventually compensate for rapidly increasing recurring
costs and a downturn in service charges and fees. Although it is likely that this is true in
the long run, delays in the timing of stabilized revenues vs. the loss of development
revenues have contributed, along with several other factors, to short-term financial
stress.
The following findings respond to the first seven" desired results" of the independent
financial review. A subsequent chapter addresses related recommendations.
FINANCIAL CONDITION
1. The City of Chu/a Vista financial condition was stressed in the current budget cycle
(2006 and 2007).
a. Current budget conditions were
precipitated by substantial
increases in costs, and revenues
falling behind growth seen in
prior budgets. Figure 1
illustrates the recent use of
reserves and one-time funding
sources as expenditures
outpaced revenues.
Figure 1
General Fund Revenues and expenditures
$170
$140
Use of Reserves & One-
TlIlle Revenues to Fund
Sha1faIls & Md-Year
}\ppropIiatiQls
c
o
=$110
'E
$80
$50
~'O ~"\ ~'b .S> _C\ ~" ~'" ~" -'" ~<O ~'O ~
"dj'J "dj'J "dj'J "q,"'- 'fl"" 'flv 'flv ",Cv ",C'" 'flv 'flv 'flv
b. Expenditure increases included
significant salary increases
(including an initial 8 to 10
percent increase for Public Safety employees beginning in FY06, an increase in
debt service of $6 million annually over the past five years (a portion funded by
the General Fund) to pay for major new public facilities, and a significant
increase in Public Employee Retirement System (PERS) contribution rates.
c. Mid-year appropriations have also had a major impact on the need to draw-
down reserves. From FYOl through FY06, mid-year appropriations, net of
offsetting revenues, totaled $24.2 million.
3
P"\17000s\17006ChuIllFinRvu'\Repart\17006rpt5.doc
15-8
Chula Vista Financial Review
April 12, 2007
d. The effects on reserves were compounded by limited revenue growth, including
revenue "take-aways" by the State; a loss of franchise revenue in 2003 caused by
declining energy prices and adjustments to the method of fee calculation; the use
of reserves to fund shortfalls which reduced interest earnings to the City; and a
slowing of development-related revenues without a corresponding reduction in
related costs.
e. Various "one-time" sources helped balance prior adopted budgets while reserves
have been drawn down for special projects and expenditures; this strategy
cannot be applied indefinitely without exhausting remaining reserves.
2. It will be challenging to meet budget obligations in the upcoming budget cycle.
a. Going into the two-year budget cycle, recurring revenues are lagging expected
expenditures. A combination of staff-related savings (e.g., freezing unfilled
positions, reducing positions not required for core functions) and other spending
reductions are needed to narrow the gap.
b. Expenditure controls on existing departmental functions, limitations on any new
expenditures, and focus on increasing revenues will all be necessary to balance
the budget and to create a more sustainable basis for future budgets.
c. The new budget provides a context for considering recommended reforms.
3, Over the longer term, the City's financial conditions will improve as its tax base
expands and appropriate fiscal discipline is exercised,
a. Growth prospects in Chula Vista remain sound; substantial development
capacity remains and regional market conditions are favorable to Chula Vista.
While current national economic trends affecting the housing market are
expected to continue for several more years, a rebound will eventually occur, as
is typical of the business cycle.
b. In addition to growth prospects, considerable opportunities exist to continue the
expansion of the City's tax base (e.g., retail sales).
c. Existing collective bargaining agreements (MOUs) expire in 2010. Future
negotiations should link employee compensation agreements to an achievable
forecast of municipal revenues.
d. Recent completion of new public facilities provides capacity for substantial
future growth without a corresponding need for future debt service.
4
P:\17000s \ 17006ChulilFinR!>Ul \Report\ 17006rpl5.do<:
15-9
Chula Vista Financial Rroiew
April 12, 2007
FINANCIAL MANAGEMENT
4, The organizational structure and staff overseeing the City's finances and the budget
process are sound.
a. The current organizational structure and budget-making procedures followed
reflect common and well-accepted practices among municipalities around the
State and country. Prior City budgets have been recognized for their excellence
by professional organizations including the California Society of Municipal
Finance Officers and the nationally-based Government Finance Officers
Association.
b. Currently, the budget-making process formally begins with overall priority
setting by the City Council followed by an interaction between the Office of
Budget and Analysis (OBA), Finance, and the individual departments. In this
process, departmental budget requests are typically based on prior budget
appropriations, plus new expenditures to cover salary increases, expansion or
improvement to services, and capital outlays. At the same time, OBA and
Finance, being aware of overall revenue limitations, struggle to contain costs,
find additional revenues, and balance the overall budget. Ultimately, the City
Manager prepares a draft budget for consideration by the City Council.
c. Record keeping, data availability, and audited financial statements all reflect
sound financial practices.
d. The two-year budget used by Chula Vista provides a sound approach to
budgeting and can make the budget-making process more efficient and cost-
effective; however, in periods of rapid change or stress, a single-year budget
process may be necessary.
e. City staff has historically prepared revenue and cost forecasts, although their
budget forecasting capabilities will be improved through implementation of the
"Muni-Cast" model currently under development by the Finance Department.
f. While the City's budget making process formally begins with a priority-setting
process; the process has apparently not comprehensively considered and
prioritized all increases in expenditures, including employee compensation and
benefit agreements, capital expenditures and debt service, and increases in
services or service levels against a conservative forecast of revenues available.
g. The stresses underlying the FY 06-07 Budget were not described in the budget
document. Future budgets should more transparently reveal issues and
constraints being faced and how the budget responds to these issues and
constraints.
5
P: \ 170005 \ 17006CkuwFinR17U' \Repart \ 17006rpt5.do<;
15-10
Chula Vista Financial Review
April 12, 2007
h. The Capital Improvement Program (OP) document, while comprehensive with
regard to projects programmed, lacks transparent identification of how major
capital expenditures are funded and the sources of this funding,
1. Departmental "strategic plans," while useful descriptions of accomplishments
and ideal service and facility plans, are not fully responsive to the budget
priority-setting process because they generally lack assessment of response to
external conditions (e.g., cyclical or permanent reductions in development
activity) or realistic funding constraints. Moreover, the strategic plans do not in
all cases utilize common forecasting framework or consistently apply
performance-related measures.
5. Cumulative budget implications of previous expenditure commitmeuts, including
major capital projects, staffing levels, and increased employee compensation, were
not adequately anticipated.
a. During the period of rapid urban expansion, the combination of short-term
revenue increases, the growing demands for facilities and services from new
development, and the opportunities to improve civic facilities have focused the
City's attention upon building major infrastructure and facilities and expanding
services to meet new demands.
b. During this period, it is not clear that budgetary forecasts and constraints were
adequately taken into account as the City Council considered expenditure
commitments, either during the budget process, negotiations with bargaining
units or when committing to major capital improvements.
c. In budgets prior to the current ('06-'07) budget, deferring consideration of major
expenditures items to mid-cycle limited the ability of the City Council to
consider and prioritize these expenditures in the context of overall budget
conditions and capabilities.
FINANCIAL FORECAST
6. Budget prospects in the five-year time frame (the next two or three budget cycles)
indicate the need to carefully control costs, expand revenues, and rebuild reserve
accounts.
a. At this juncture, beginning preparation of the 2007 and 2008 Budget, revenue
constraints have become evident, along with the full implications of prior budget
commitments.
b. Compensation and benefit agreements with employee bargaining units
committed the City to substantially increased costs through 2010.
6
P: I 17000s \ 17006ChulnFinRvw IReport \ 17006rptS.doc
15-11
Chula \!isla Financial Review
Apri/12, 2007
c. Debt service for major facilities has become a significant General Fund
obligation, totaling $13.7 million annually, although over half ($7.5 million) of
these costs will ultimately be borne by the City's development impact fees. The
debt service, and the General Fund share, will decline by over $2.5 million when
the Pension Obligation Bonds are paid off in 2012. Debt service obligations,
unlike service levels, are not discretionary and cannot be modified in response to
changing revenue availability and budget priorities.
d. The City has recently completed an effort to quantify the cost of major facility
maintenance, including roads and drainage facilities. The major expansion of
infrastructure and facilities in recent years has greatly expanded these cost
obligations, as well as costs associated with a broad range of other public assets
including buildings, parks and recreation facilities for which maintenance costs
have not been fully estimated. It will be necessary in the upcoming and future
budgets to address the costs of preventative and deferred maintenance.
e. Anticipated (conservative)
increases in recurring
municipal revenues are not
likely to match the total
funding required because of
baseline expenditure
increases, new expenditures
(e.g., full funding of
maintenance costs),
adjustments to funding of
redevelopment, and
rebuilding of reserve
accounts. Figure 2 illustrates
conservative revenues just meeting expenditures; however, this expenditure
forecast does not include the full costs anticipated for meeting maintenance
needs, nor for rebuilding reserves.
Figure 2
GlInend Fund Revenues and Expenditurws
Projec:f.fJd
$200
Moderate
RevenJe Gro'NlI1 . ...
6% ,./"
.
.
~
'E $170
$140
2007
2008
2009
2010
2011
2012
2013
f. While positive economic activity and greater revenue growth will help address
these funding issues, the City will continue to be subject to certain unpredictable
risks that it has encountered in the past, including development downturns,
fluctuations in energy prices and utility consumption, legal decisions regarding
certain revenue sources, economic cycles affecting the value of its pension assets,
and uncertain timing regarding major development projects.
7. Budget prospects in the ten-year time frame are sound. However, caution and
continued revenue enhancement will still be necessary.
a. Growth prospects are sound and ample opportunities exist to expand the City's
retail and visitor-serving sectors. These opportunities, as realized, will underpin
steady revenue increases during the ten-year time frame.
7
P: \ 170005 \ 17006ChuliiFinRvw \Report \ 17006rplS.doc
15-12
Chula Vista Financial Revieul
April 12, 2007
b. While major capital expenditures have been made in the past few years, reducing
the need for a continuation of capital investment at recent levels, there will be a
continuing need to invest in infrastructure and new facilities in order to maintain
service levels mandated by the Growth Management Ordinance.
c. Concerted action to control costs and to expand existing revenues during the
next five years will contribute to a sustainable fiscal base for Chula Vista in
subsequent years.
d. Significant additional costs are anticipated and will need to be funded in the ten-
year time frame. These include:
Continued increases in staff salaries (to be determined in the next round of
negotiations with bargaining units in 2010);
Funding deferred and scheduled maintenance of major municipal facilities
and infrastructure; and
Assuring adequate reserve accounts.
Additional staff needs to maintain service standards and thresholds.
e. Despite the City's sound growth prospects, future revenues will not be sufficient to
cover all expenditures. The City will continue to face the potential adverse impacts
of economic cycles, the magnitude of required capital maintenance (deferred and
preventative), and other risks to existing sources of recurring revenues.
Accordingly, seeking efficiencies in service delivery and other cost savings along
with additional sources of revenue for funding desired capital projects or
maintaining or improving service levels may be required.
8. The financial forecast for Chula Vista ultimately depends upon the quality of
information provided by City staff and the budget decisions taken by future City
Councils.
a. The forecasts provided above, or the more detailed forecasts that will be made as
a part of the subsequent budget-making process, provide a basis for decisions.
b. Forecasting should anticipate possible variations in costs and revenues, but it
cannot predict unforeseen circumstances, including changing economic
conditions, changes in State statutes affecting local government finance, and legal
challenges.
c. The fiscal sustainability and well-being of Chula Vista depends on actions by this
and future City Councils, including:
Fully recognizing revenue limitations and risks.
Achieving economic development objectives.
8
P: \ 170005 \ 17oo6Ch ulDFinRvw \Report \ 17006rptS.doc
15-13
Chula Vista Financial Revi.evJ
April ]2, 2007
Establishing clear expenditure priorities.
Balancing decisions regarding capital improvements, staffing levels and
compensation, and services against conservative revenue forecasts.
IMPLICATIONS OF FUTURE DEVELOPMENT
9. There is substantial remaining residential development capacity in Chula Vista that
will require additional expenditures and, at the same time, generate municipal
revenues.
a. The recently updated General Plan included a substantial definition of
development capacity throughout the City; the physical capacity for an
additional 30,000 units exists. As shown on Table 1, the majority of this capacity
is located in eastern Chula Vista.
Table 1: Chula Vista Residential Development Capacity
Residential Development Type
City Sub-Area Single-Family Multifamily Total %
Eastern Chula Vista 6,356 11.084 17,440 55%
Northwestern Chula Vista 117 7,667 7.784 25%
Southwestern Chula Vista 62 3,792 3,854 12%
Bayfront Q 2400 2400 8%
Total 6,535 24,943 31,478 100%
21% 79% 100%
Source: Chula Vista Planning & Building Services, based on General Plan.
b. Residential development capacity is dominated by "multifamily" housing
prototypes (e.g., townhomes) of a higher density than the traditional single-
family product that has dominated the market in recent decades.
c. The mix of residential density types will generally tend to generate somewhat
lower average sale prices (and related property taxes). However, the population
growth and related service demands will be slightly less per unit, relative to
single-family development.
d. Over the next decade residential (and related population) growth rates are
expected to be, on average, below those experienced during the early part of the
current decade. For purposes of budget forecasting, a figure of 1,600 units per
9
P:\ 17000s\17006ChulaFinRvw\RepCll't\ 17006rpt5.do(
15-14
Chula Vista Financial Review
April 12, 2007
year is a sound estimate for the next ten-year period, although annual rates will
vary around this number. It appears that fewer units than the longer-term
average may be built in the next few years as the housing downturn continues.
Near-term revenue forecasts and staffing decisions should reflect the likelihood
of this continuing weak housing market trend.
10, Growth Management Ordinance "threshold standards" obligates the City to
maintaining or improving service levels to this new development (along with all
existing development).
a. The City has successfully expanded facilities and services during the period of
rapid growth and has generally met the "threshold standards" established in the
Growth Management Ordinance.
b. With the City's major infrastructure in place, average additional capital
investments per resident should decline as existing investments full capacity is
realized.
11. Opportunities exist for the City to improve its revenue performance by capturing a
larger share of local retail sales.
a. At the present time residents of Chula Vista continue to make retail purchases
(particularly "regional" shopping goods) in other retail venues in the San Diego
region.
b. Current retail sales tax per capita is $106, which is approximately 75 percent of
the State and Countywide averages.
c. Over time the City's retail performance has improved; however, there is an
opportunity to capture a higher percentage of local sales and attract regional
sales to the City. Major projects under development or in the "pipeline" include
the Otay Ranch Town Centre Mall, the Eastern Urban Center, and expansion of
the Chula Vista Auto Park.
d. These specific opportunities to increase retail sales, along with new business
throughout the City will contribute to a continued increase in retail sales tax in
the City's budget.
12. Four major nodes of development will transform the City.
a. The Bayfront area will be transformed by the major destination resort/conference
center currently being planned and negotiated by the City, a private developer
(Gaylord) and the Port of San Diego.
10
P: \ 170005 \ 17oo6Chu/QFinRvw \Report \ 170lJ6rptS.doc
15-15
Chula Vista Financial Review
April 12, 2007
b. The pending adoption of the Urban Core Specific Plan along with subsequent
implementation efforts will set the stage for revitalization and redevelopment of
the Urban Core Area.
c. The University Park and Research Center (UPRC) will be located on a SOD-acre
site in eastern Chula Vista. The UPRC will combine the academic activities of a
number of institutions of higher learning, private-sector research and
development and a commercial center.
d. The Eastern Urban Center (EUC) is envisioned as a major urban center located
along the alignment of the new State Route 125 in eastern Chula Vista. The
Eastern Urban Center will include a dynamic mix of higher density housing, a
town center area, community parks and other recreational amenities and a
business park/industrial area.
e. Taken as a whole, these projects will establish a vital new urban context for the
City, attracting new business and services, and creating new educational,
recreational, and commercial opportunities.
13. The current organization of the City's planning and community development
functions inhibits the City's ability to achieve economic development and
redevelopment objectives.
a. The Planning and Building Services Department historically has focused its
efforts on development activity in the eastern portions of the City, whereas the
Community Development department has focused on redevelopment and
planning in the City's western area.
b. The traditional geographic division and conflicts between the Planning and
Community Development Departments inhibit the City's efforts to achieve
specific economic development initiatives, restore and revitalizing existing urban
areas, and sustain quality of life throughout the City.
c. While the strong commitment to managing new development in the eastern
portion of the City should continue, a balanced approach to revitalizing existing
commercial areas and neighborhoods throughout the City will also be needed,
including redirection of development-related staff resources to code enforcement
and neighborhood revitalization. As this transition occurs, cost recovery through
service charges to new development will proportionately diminish, increasing
the general fund support for planning and building-related services.
11
P: \ 17000$ \ 17006ChuwFinRVlJ! \Report \ 17006rptS.doc
15-16
Chula Vista Financial RevieuJ
April 12, 2007
CAPITAL INVESTMENTS AND RELATED MAINTENANCE
OBLIGATIONS
14. The City has aggressively pursued major capital investments during the past decade.
a. During the past five years the City has significantly increased its infrastructure
and public facilities assets, the estimated value of which grew from $370 million
to over $900 million, an increase of over $500 million (not including
"construction in progress").
b. These improvements have included the infrastructure necessary to support
development in the east, primarily constructed by developers as conditions of
approval and the City's development impact fees, and also major civic facilities
induding the police headquarters, the renovated City Hall, the new corporation
yard, the three new recreation centers, and the three new fire stations.
Table 2: Additions to City Assets
Fiscal Year Ending (1)
Item 2002 2003 2004 2005 2006 5-Year Total
Land $4.8 $3.9 $6.6 $8.7 $2.5 $265
Construction in Progress 22.9 29.6 30.0 32.8 42.5 157.8
Buildings 0.1 27.5 1.0 77.2 105.8
Other 1m provements 2.0 3.4 5.7 4.0 15.1
Machinery and Equipment 3.9 3.5 3.4 3.7 3.0 17.5
Infrastructure 11.7 153.9 60.4 698 67.1 362.9
Total $43.4 $220.4 $104.8 $120.7 $196.3 $685.6
(1) 2006 shows governmental activities; other years include business-type activities.
Sources: Comprehensive Annual Financial Reports, Notes to Financial Statements; Economic and Planning Systems, Inc.
15. Funding for capital improvements has come from a variety of sources that might not
be sustained in the future.
a. Funding for the new capital improvements has been derived from development
impact fees, tax increment financing, other special funds, and increasingly, the
General Fund.
b. As the level of development has stabilized and existing financial capacity has
been tapped, the rate of investment that has occurred recently will not be
sustained.
12
P:\17000s117006ChulaFinRlIll'IRepartI17006rpt5.doc
15-17
Chula Vista Financial Review
Apri/12, 2007
16. Additional capital improvements will be necessary as growth continues; the Growth
Management Ordinance "threshold standards" establish a quantitative link
between facilities and new development.
a. Recent investments and pending agreements assure that a complement of
facilities needed to achieve "threshold standards" either are built or will be built.
b. Generally, growth-related infrastructure is funded with the City's development
impact fees. Major facilities, such as the new City Hall, the policy headquarters,
and the corporation yard, all have capacity to meet demands of buildout levels of
population.
c. Additional facilities, including new fire stations, parks and recreation centers,
and the proposed new library will be needed to meet threshold standards as the
City continues to grow.
17. Operating and maintaining infrastructure and civic facilities will place an
increasing financial burden on City.
a. As the facilities age, maintenance costs will grow. Future costs will be even
greater if inadequate funds are committed to maintenance in initial years, and
deferred maintenance is allowed to grow.
b. Maintenance of existing facilities has, in some cases, been deferred, so there will
be additional costs involved in addressing this deferred maintenance.
TAX INCREMENT FINANCING
18. Over the past 30 years the City established five redevelopment project areas which
have subsequently been amended, expanded, and merged.
a. Five redevelopment projects areas have been formed in Chula Vista including
Town Centre I (1976), Town Centre II (1978), Otay Valley (1983), the Southwest
Area (1990), and the Bayfront (1974).
b. These redevelopment project areas have been amended over the years, and more
recently, merged into two larger project areas, the Merged Chula Vista
Redevelopment Project Area and the Merged Bayfront/Town Centre I
Redevelopment Project Area.
c. Despite the mergers, the original duration of the original (now constituent)
project areas remain; the Town Centre areas (I and II) will come to term (the time
beyond which no debt can be issued) in the next decade.
13
P: \ 170005 \ 17006ChuIaFiIlRUll! IReport I 17006rpl5.doc
15-18
Chula Vista Financial Review
April 12, 2007
d. The Redevelopment Plan areas have substantial tax increment and bonding
potential remaining, per the legal limits as set forth in the enabling
redevelopment plans; however this capacity has not been realized due to lack of
growth in assessed value.
19. Funding from redevelopment project area property tax increments is allocated to a
variety of redevelopment-related activities and obligations.
a. Taken as a whole, the redevelopment project areas generate approximately
$10.4 million in property tax increments annually.
b. Under the terms of the original redevelopment plans approximately $2.3 million
of tax increments funding is "passed through" to the County and other taxing
jurisdictions.
c. Under the provisions of State Redevelopment Law, 20 percent of tax increments
must be set aside for affordable housing projects in the City; at the present time
nearly $2 million annually is set aside for affordable housing subsidies, which is
slightly less than 20 percent of the total increment. The percentage is less than 20
percent because of prior expenditures of tax allocation bond for affordable
housing projects.
d. Current debt obligations, including tax allocation bonds and payments on
certificates of participation, total $3.9 million annually. These debt commitments
will be relatively stable in the coming decade.
20. Current funding commitments constrain future use of property tax increment
financing to stimulate desired private investment.
a. The tax increment remaining after "pass-throughs", affordable housing, and debt
service is approximately $2.5million annually. All of this remaining increment
has been consumed in recent years entirely by operational and administrative
costs. In fact, costs applied to the redevelopment fund have exceeded
redevelopment tax increment funding available in recent years.
b. In the FY 05-06 Budget, approximately $4.3 million of costs were applied to
redevelopment. Of these charges $3 million were for Community Development
Staff while the remaining $1.3 million were for other department staff, most
significantly the City Attorney, Administration, and Planning and Building
departments.
c. The direct cost of Community Development staff (without the City overhead
factor) was approximately $1.5 million.
14
P:\17000s \11OO6ChuIaFinRvw \Repar/\ 11006rpl5.doc
15-19
Chula Vista Financial Review
April 12, 2007
d. Savings to the tax increment fund could be achieved if the current Community
Development staff were charged directly (without the applied City overhead
factor) and other City department direct costs were more limited. However, this
shift in cost allocation would corne at the expense of the City's General Fund.
e. In any event, virtually no tax increment funding remains for project-related
investments. The future ability of Redevelopment Agency to make substantial
investments will depend upon increases in the assessed value within the
Redevelopment Project Areas, which in turn is linked to success of revitalization
and economic development efforts.
21, Major investments funded with tax increment have not in all cases led to
corresponding private investment and related redevelopment activity.
a. Major investments made with redevelopment funds, including sites for public
facilities (police station), parking garages, and streetscape improvements, were
not directly linked and strategically targeted to incentivize private development.
b. In the past no objective criteria appear to have been applied by the Community
Development Department in making project-related investments. State statutory
requirements, while directive, are rather broad and subject to interpretation.
c. The adoption of the Urban Core Specific Plan and pursuing its implementation
will remove current land use policy constraints that limit potential
redevelopment and revitalization activity in the Urban Core Area.
Redevelopment of the area will help achieve economic development and
redevelopment goals which in turn will contribute to the City's revenue base.
22, Prospects for the deployment of redevelopment powers and resources in Chula Vista
are favorable,
a. Market conditions in the redevelopment project areas, as is the case throughout
the City, are sound, despite the current downturn in the housing market. Ample
business opportunities consistent with City's redevelopment objectives exist, as
is evidenced by the pending exclusive negotiating agreements.
b. There are many competing uses for redevelopment activity throughout the
project areas including improving existing neighborhoods, subsidizing
affordable housing, leveraging (and thus stimulating) private investment in
beneficial projects that would otherwise be infeasible, and providing beneficial
urban amenities that generally stimulate private investment.
15
P: \ 17000s \ 17006ChuwFil1Rvw \Repart \ 17006rpt5.doc
15-20
Chula Vista Financial Review
April ]2, 2007
RETIREMENT LIABILITIES
23. The City has entered into agreements with public employed bargaining units under
which the City must fund an expanding retirement obligation through PERS.
a. At the present time, payments on behalf of City employees to the retirement
system equal 16 percent of the City's General Fund.
b. As employee salaries increase, future retirement obligations and required
contributions similarly increase. The 8 to 10 percent salary increase for Public
Safety employees beginning in FY06 created an additional liability that may
trigger an increase in contribution rates, depending on the future performance of
the PERS investments.
24. In addition to the direct payments made on behalf of the employees to the retirement
system, the performance of the PERS portfolio, which is subject to market forces,
could be a further drain on City financial resources.
a. Since 2002, contribution rates increased dramatically, largely because of adverse
impacts of market conditions on PERS investments. As shown in Table 3, stock
market gains during the late 1990s provided adequate funding for the retirement
plan. The subsequent losses required a significant, multimillion annual
contribution by the City to assure adequate funding.
b. Future economic cycles could similarly cause significant cost increases to the
City's budget, although the "smoothing" strategy implemented by PERS will
limit year-la-year fluctuations in financial market performance.
16
P:\17000s\17006CkuIllFirzRl1lf1\ReplJ1't\17006rpt5.doc
15-21
Chula lfista Financial Review
April 12, 2007
Table 3: PERS Required Contribution Rates (1)
Category
2002
Fiscal Year Ending
2003 2004 2005
2006
Public Safety
Employer
Other (2)
Total
0.00% 0.00% 5.78% 24.47% 23.25%
9. 00% 9.00% 9.00% 9.00% 9.00%
9.00% 9.00% 14.78% 33.47% 32.25%
0.00% 0.00% 12.02% 15.98% 20.15%
8.00% 8.00% 8.00% 8.00% 8.00%
8.00% 8.00% 20.02% 23.98% 28.15%
Miscellaneous
Employer
Other (2)
Total
(1) Does not include additional costs to repay City's Pension Obli9ation Bond.
(2) "Other" includes City-funded employee share.
Sources: CalPERS Actuarial Valuation Reports
17
P: \ 17000s \ 17006ChuI4FinR1JW \RepiJrt \ 17006rplS.doc
15-22
IV. STRENGTHENING CHULA VISTA'S FINANCIAL
CONDITION
The findings of this financial review effort expressed above lead to a set of
recommendations for strengthening Chula Vista's financial condition. As noted in the
findings the circumstances faced by the City are entirely manageable; while there are
existing and future challenges to be faced, the prospects for the City are very sound
given regional market conditions, related development opportunities, the investments
that have been made and the capabilities of City staff.
The key to facing the challenges will be a commitment to a set of changes including
those related to budget making, departmental management, and reorganization.
1. Decisive action is necessary in the current budget cycle to contain costs allowing
recurring municipal revenues to "catch up" with sustained expenditure levels.
a. A substantial effort will need to be made to contain expenditures through such
actions as freezing or eliminating certain unfilled positions and limiting non-
essential capital outlays, and curtailing or eliminating non-core services.
b. It will be important for this cost-containment effort not to inhibit essential
capabilities or impede activities that have potential for increasing municipal
revenues, including maintaining an adequate complement of staff in key
development services functions including processing development applications,
implementation of key planning and community development initiatives
including major retail expansion projects, the Bayfront, and the Urban Core Area.
c. Funding expenditures that in the longer term are viewed as essential (e.g., re-
establishing a sufficient reserve fund) will need to be deferred until sufficient
revenues become available.
d. Consider reverting to a single-year budget cycle for a period of the next four
years.
2, Continue transitioning to a more "program planning" and "performance- based"
budget process utilizing departmental strategic planning and effective City-wide
priority setting.
a. City staff has been moving toward program- and performance-based budgeting
for the past several budget cycles. A program-oriented budget is based primarily
on programs (and program priorities) and secondarily on traditional budget unit
characters and objects. The major benefit of a program planning approach lies in
the planning and priority setting process, i.e., the process of making budget
decisions that support specific multi-year plans and related performance
measurement.
18
P: \ 17000; \ 17006Chu1aFinRl]w \RqJort \ 17006rpt5.doc
15-23
Chula Vista Financial Review
April 12, 2007
b, However, as noted in the findings, the current budget making process does not
necessarily provide a full opportunity for requested expenditures to be fully
prioritized in view of budget constraints and strategic objectives, while at the
same time information that would allow such prioritization currently exists (or
can be included) in the strategic plans prepared by the individual operating
departments.
c. Departmental "strategic plans" typically serve as a basis of a program-oriented
approach to budgeting. The City's departmental strategic plans, in the future,
should incorporate assessment of potential external forces influencing service
costs (e.g., growth rates), consider likely constraints on general fund revenues,
and focus on specific program outcomes and service standards and on ways to
increase efficiency and scale operations to reasonable expectations of service
demands.
d. At all times but particularly at a time of fiscal stress, priority setting - making
strategic choices responding to limited budget resources is essential.
3. Strengthening reserve accounts should be a primary objective budget policy in future
budget cycles.
a. Current reserve policy, at 8 percent, may be inadequate, given the contingencies
and risks faced by the City as time goes forward. While there is no "magic"
number, a target of 15 percent would provide a more comfortable cushion
against unforeseen events and circumstances. During peak growth periods,
larger contributions will help to buffer against inevitable downturns.
b. Reserve funds should be retained for the purpose of dealing with unforeseen
circumstances or expenditures. Thus, the City Council should be required to
make specific findings regarding the proposed expenditure in order to transfer
funds from reserves to the General Fund or special projects. At the same time a
more thorough effort to anticipate costs in the adopted budget will minimize the
need for drawing down reserves.
c. In addition to general reserves, a number of special reserve funds should be
created and funded at an appropriate level including the existing equipment
replacement fund and a facility maintenance fund. Longer term replacement of
major facilities will also be an expenditure at some point in the future. The levels
can be determined through a combination of risk assessment, "life-cycle" cost
analysis, and evaluation of existing conditions and optimal levels of
repair/replacement.
19
P: \ 170005 \ 17oo6ChulaFinRI1w IRepll7t \ 17006rpt5.doc
15-24
Chula Vista Financial Review
April 12, 2007
4. Applying the financial forecasting capability presently being developed by City staff
will help assure that expenditure commitments are offset by realistic expectations of
municipal revenues.
a. City staff is currently deploying a new budget forecasting capability using the
"Muni-Cast" software. This new forecasting ability will improve the ability of
staff to forecast future budget conditions, conduct sensitivity analysis, and assist
in the priority-setting actions of the City Council.
b. Improved technical capability to estimate costs associated with maintenance of
municipal infrastructure will assist in budgeting for this purpose.
c. The departmental strategic plans should incorporate and respond to the City's
overall revenue forecast and be developed in sufficient financial detail (annual
costs and phasing) to facilitate incorporation into the cost forecasting effort.
d. The cost and revenue forecasting process should including specific "sensitivity"
analysis of potential budget circumstances such as loss of a vulnerable revenue
source, continued downturn in development-related revenues, and failure to
achieve economic development objectives. For example, during the next few
years the implications of a protracted slowdown in housing starts should be
explored.
5. The City should focus its planning and economic development efforts upon coherent
effort to promote development consistent with the General Plan, thereby expanding
the City's tax base.
a. This expansion should occur through economic development, redevelopment,
strengthening of existing retail business, and revitalization of existing
neighborhoods.
b. A concerted effort of the City, engaging the talents of all related departments,
should be focused upon achieving key economic development and
redevelopment objectives including the Bayfront, the Urban Core revitalization,
the Eastern Urban Center, the University Park and Research Center, and the
expansion of retail shopping opportunities throughout the City.
c. Objective criteria should be established to determine the appropriate type and
amount of financial assistance to development projects. As an example,
redevelopment investments should meet a range of "tests" including such
requirements as the "but for" test (without assistance the project would not
happen); "proportional direct private investment" (private investment should
match redevelopment expenditures by a factor of ten or more); and "economic
development and fiscal benefits" (e.g., jobs, retail sales taxes, blight removal,
etc.).
20
P:\17000s\17006ChuillFinRvu'\Rl'por/\17006rp!5.doc
15-25
ChuIa Vista Financial Review
April 12, 2007
d. Reorganization of the City's planning, redevelopment, economic development,
housing, and development services functions and related policy and procedural
reforms can improve the efficiency and effectiveness of planning and economic
development efforts. Given history, such reorganization will be challenging. An
independent management study should be conducted to determine the most
optimal organizational structure and the steps necessary to achieve this
structure.
e. In any event, the Redevelopment Agency should be maintained as a separate
budget unit.
6. Attaining and sustaining maximum "cost recovery" for development related services
should be implemented through regularly updating service fee schedules.
a. A review of development service charges for services, impact fees, and related
development-related revenues should be conducted. Consistent with recent
completed technical analysis, service charges and fees should approach full "cost
recovery" levels.
b. Service charges and fees should be "indexed" annually and/or updated every
year or two to assure that they remain able to cover related costs.
c. The potential economic effects of service charges and fees should, at the same
time, be considered and policies established for balancing cost recovery efforts
with economic development objectives.
7. The City should monitor regional and State trends related to pension reform.
a. It is recognized that the City will need to continue offering competitive salary
and benefit packages to assure attraction and retention of high quality staff;
however, cost increases, especially for public safety functions, will likely
continue to escalate faster than existing recurring revenues, placing continued
pressure on the budget.
b. This issue is of concern to cities throughout the State (and around the entire
Country) and thus responses at the State level will continue to be a possibility.
The City should, through its legislative efforts and participation in the League of
Cities, monitor and participate in the formulation of appropriate reforms.
8. New sources of revenue, especially related to maintenance and capital replacement
obligations, should be sought.
a. Major, currently unfunded expenditures will be needed to maintain the City's
growing infrastructure and public facilities assets.
21
P: \ 170005 \ 17oo6C11u/QFinRvw\Repart\ 17006rpl5.doc
15-26
Chula Vista Financial Review
April 12, 2007
b. Alternatives for funding these maintenance costs should be considered including
the creation of Oty-wide maintenance districts, creation of development-specific
maintenance districts or assessments, or expansion of general revenues to cover
these costs (e.g., sales tax measure).
9. Special funding should be sought for major civic facilities in the future (e.g., general
obligation bonds).
a. The Oty has benefited from growth over the past several decades; this
development has, through the City's development impact fees and other
revenues and agreements, funded a substantial improvement in the City's
infrastructure and public facilities.
b. Additionally, as general revenues have increase, the City has funded new public
facilities with general revenue sources using certificates of participation and
other funding mechanisms including redevelopment tax increments.
c. Development-related and general revenue sources will both be more constrained
in the future and thus the City may need to seek funding from voter-approved
bonds. Such bonds (e.g., a general obligation bond) can be used for a variety of
community improvements including deferred maintenance projects and new
public facilities.
22
P:\ 17000s\17006ChuwFinRvw \Repart \ 17006rpt5.doc
15-27
Economic e7
Planning Systems
Pu.1I1jr finall<'f
I<~(jl brill!' Ewnllllli"
R"gional !:nnwm:c.<
J""J L'3( 1>"li,}'
BmUOGRAPHY
15-28
BIBLIOGRAPHY
1. Bob McSeveney, Principal Management Assistant. City of Chula Vista
Department of Planning and Building. Memorandum to Maria Kachadoorian,
Director of Finance via J.D. Sandoval, Director of Planning & Building. "POs Not
Carried Over to FY 06/07." January 5,2007.
2. Bob McSeveney, Principal Management Assistant. City of Chula Vista
Department of Planning and Building, Memorandum to Maria Kachadoorian,
Director of Finance and Ed Van Eenoo, Director of Office of Budget and Analysis
via J.D. Sandoval, Director of Planning & Building. "FY07 Redevelopment
Revenues." August 28, 2006.
3. Bob McSeveney, Principal Management Assistant. City of Chula Vista
Department of Planning and Building. Memorandum to Ed Van Eenoo, Office of
Budget and Analysis Director viaJ. D. Sandoval, Planning and Building Director.
"Code Enforcement FY06/07 Revenues Budget." July 21, 2006.
4. Brad Remp, Assistant Director/Building Official. City of Chula Vista Department
of Planning and Building. Memorandum to File. "Building Fee Study Adoption."
January 24, 2007.
5. "CaIPERS Actuarial Valuation - June 30, 1999. Miscellaneous Plan of the City of
Chula Vista Employer Number 195." October 26, 2000.
6. Chula Vista Fire Department. "Strategic Business Plan 2004 - 2010." July 1, 2004.
7. Chula Vista Public Library. "Chula Vista Public Library Strategic Plan 2002-
2006." April 2002.
8. Chula Vista Recreation Department. "Strategic Plan 2003 - 2008."
9. City of Chula Vista. "Chula Vista Municipal Code."
10. City of Chula Vista. "Construction Valuation, Property Tax, and Employment
Projections for New Residential, Commercial and Industrial Parcels within the
Major Project Area as of 2003 - 2006." March 28,2007.
11. City of Chula Vista. "Planning Fee Schedule." March 26,2007.
12. City of Chula Vista. "2007 Annual Growth Management Review Cycle:
Residential Growth Forecast Years 2007 through 2011." January 2007.
13. City of Chula Vista. "Adopted Budget Fiscal Years 2006-2007: Volume I"
P: \ 170005 \ 17006ChuUlFinR!>u' IReport \ Bi/Jliogmphy.dnc
15-29
Chula Vista Financial Review
April 12, 2007
14. City of Chula Vista. "Adopted Budget Fiscal Years 2006-2007: Operating Budget:
Volume II"
15. City of Chula Vista. "Comprehensive Annual Financial Report for the Year
Ended June 30, 2006." October 26, 2006.
16. City of Chula Vista. "Memorandum of Understanding between the City of Chula
Vista and Chula Vista Police Officer's Association FY 2005/06 through 2009/10."
August 2006.
17. City of Chula Vista. "Fiscal Year 2007 Budget Update." July 1, 2006.
18. City of Chula Vista. "General Fund Five Year Forecast 2007-2001." May 25, 2006.
19. City of Chula Vista. "Budget Update Fiscal Year 2007: Capital Improvement
Program." May 23, 2006.
20. City of Chula Vista. "Comprehensive Annual Financial Report for the year ended
June 30, 2005." September 30, 2005.
21. City of Chula Vista. "Recirculated Draft Environmental Impact Report."
September 2005.
22. City of Chula Vista. "Memorandum of Understanding between the City of Chula
Vista and Chula Vista Employees Association July 1, 2005 - June 30, 2010."
23. City of Chula Vista. "Memorandum of Understanding between the City of Chula
Vista and Local 2180 International Association of Firefighters AFL-CIO July 1,
2005 - June 30, 2010."
24. City of Chula Vista. "Memorandum of Understanding between the City of Chula
Vista and Western Council of Engineer July 1, 2005 - June 30, 2010."
25. City of Chula Vista. "Adopted Budget Fiscal Years 2006/2007: Volume I Budget
Summary." June 28, 2005.
26. City of Chula Vista. "Adopted Budget Fiscal Years 2006 & 2007: Capital
Improvement Program." May 24, 2005.
27. City of Chula Vista. "Adopted Budget Fiscal Years 2006/2007: Volume II
Operating Budget."
28. City of Chula Vista. "Draft General Plan: Document 1 of 2." December 2004.
29. City of Chula Vista. "Comprehensive Annual Financial Report for the year ended
June 30, 2004." October 1. 2004.
II
P: \ 170005 \ 17oo6ChlllllFinRuw \Report \ Bibliography .aoc
15-30
Chula 'Vista Financial Review
April 12, 2007
30. City of Chula Vista Growth Management Oversight Commission. "2003-2004
GMOC Annual Report." September 14, 2004.
31. City of Chula Vista Grown Management Oversight Commission. "2003-2004
Annual Report Appendices." September 2004.
32. City of Chula Vista. "Adopted Capital Improvement Program Fiscal Years 2004
& 2005."
33. City of Chula Vista. "Adopted Budget Fiscal Years 2004 & 2005: Volume II
Operating Budget."
34. City of Chula Vista. "Adopted Budget Fiscal Year 2005." May 20, 2004.
35. City of Chula Vista. "Comprehensive Annual Financial Report for the year ended
June 30, 2003." October 3, 2003.
36. City of Chula Vista. "Adopted Budget Fiscal Years 2004 & 2005: Volume I Budget
Summary." June 17, 2003.
37. City of Chula Vista Council Agenda Statement. May 20, 2003.
38. City of Chula Vista. "Strategic Themes." April 9, 2003.
39. City of Chula Vista. "Comprehensive Annual Financial Report for the Year
Ended June 30, 2002." October 18, 2002.
40. City of Chula Vista. "Adopted Budget Fiscal Year 2003." June 18, 2002.
41. City of Chula Vista. "Policy Threshold/Standards and Growth Management
Oversight Commission." 5th revision, May 2002.
42. City of Chula Vista. "Indirect Cost AllocationlFull Cost Recovery Plan FY 2000-
01 Update."
43. City of Chula Vista. "Comprehensive Annual Financial Report for the year ended
June 30, 2001." November 14, 2001.
44. City of Chula Vista. "Adopted Budget Fiscal Years 2002/2003." June 19, 2001.
45. City of Chula Vista. "Proposed Capital Improvements Program Fiscal Year 2001-
02 and 2002-03."
46. City of Chula Vista. "2001-02 and 2002-03 Capital Improvements Program."
III
P: I 17000s I 17006ChulaFinRvu' IReport \Bibliography.doc
15-31
Chula Vista Financial Revier.v
April 12, 2007
47. City of Chula Vista. "Proposed Budget Fiscal Years 2002 and 2003." May 29,
2001.
48. City of Chula Vista. "Comprehensive Annual Financial Report for the Fiscal Year
Ended June 30, 2000." December 12, 2000.
49. City of Chula Vista. "Adopted Budget Fiscal Year 2000-2001." August 24, 2000.
50. City of Chula Vista. "Proposed Capital Improvements Program Fiscal Year 2000-
01."
51. City of Chula Vista. "Comprehensive Annual Financial Report for the Fiscal Year
Ended June 30, 1999." October 1,1999.
52. City of Chula Vista. "Adopted Budget Fiscal Year 1999-2000." May 25, 1999.
53. City of Chula Vista. "Proposed Capital Improvements Program Fiscal Year 1999-
00." May 13, 1999.
54. City of Chula Vista. "Report on Audited Financial Statements for the Year Ended
June 30, 1998."
55. City of Chula Vista. "Proposed Budget Fiscal Year 1998-99." May 26,1998.
56. City of Chula Vista. "Proposed Capital Improvements Program Fiscal Year 1998-
99." May 4,1998.
57. City of Chula Vista. "Annual Financial Report for the Fiscal Year Ended June 30,
1997." November 21, 1997.
58. City of Chula Vista. "Proposed Budget Fiscal Year 1997-98." May 12, 1997.
59. City of Chula Vista. "Proposed Capital Improvements Program Fiscal Year 1997-
98." May 2, 1997.
60. City of Chula Vista. "Annual Financial Report for the Fiscal Year Ended June 30,
1996." November 8, 1996.
61. City of Chula Vista. "Proposed Budget Fiscal Year 1996-97." May 23,1996.
62. City of Chula Vista. "Proposed Capital Improvements Program Fiscal Year 1996-
97." May 20, 1996.
63. City of Chula Vista. "Proposed Capital Improvements Program FY 1995-96."
May 8, 1995.
IV
P: \ llOOOs \ 17006ChulllFinRvUI \Report \Bibliography.doc
15-32
Chula Vista Finandal Reuiew
April 12, 2007
64. Community Development Department. "Five-Year Strategic Plan." March 28,
2006.
65. Dana M. Smith, Assistant City Manager. Memorandum to Jim Sandoval, Director
of Planning and Building via Jim Thomson, Interim City Manager.
"Development Services FY 2007 Budget Recommendations." November 8, 2006.
66. David D. Rowlands, Jr., City Manager and Maria Kachadoorian, Director of
Finance/Treasurer. "City of Chula Vista General Fund Five Year Forecast 2007-
2001." May 25, 2006.
67. Dean Witter Reynolds, Inc. "$3,115,0001993 Certificates of Participation (Town
Centre II Parking Project - Phase Two) Evidencing the Direct, Undivided
Fractional Interests of the Owners Thereof in Lease Payments to Be Made by the
City of Chula Vista." December 15,1993.
68. Dean Witter Reynolds, Inc. "$11,285,000 1993 Refunding Certificates of
Participation (Town Centre 11 Parking Project) Evidencing the Direct, Undivided
Fractional Interests of the Owners Thereof in Lease Payments to Be Made by the
City of Chula Vista." February 18,1993.
69. Director of Budget and Analysis and Director of Human Resources. Council
Agenda Statement. "Resolution Approving Salary and Benefit Enhancements for
the Chula Vista Police Officers Association and Appropriating Funds Therefore."
September 13, 2005.
70. Director of Budget and Analysis and Director of Human Resources. Council
Agenda Statement. "Resolution Approving Salary and Benefit Enhancements for
the International Association of Firefighters Local 2180 and Appropriating Funds
Therefore." September 13, 2005.
71. Director of Budget and Analysis and Director of Human Resources. Council
Agenda Statement. "Resolution Approving Salary and Benefit Enhancements for
the Chula Vista Employees Association, the Western Council of Engineers, and
for All Non-represented Employees and Appropriating Funds Therefore."
September 13, 2005.
72. Director of Finance/Treasurer. Council Agenda. "Quarterly Financial Status
Report for the Quarter Ended December 31, 2006." March 6, 2007.
73. Director of Finance/Treasurer. Council Agenda Statement. "Quarterly Financial
Status Report for the Quarter Ended September 30, 2006." December 19, 2006.
74. Director of Finance/Treasurer. Council Agenda Statement. "Quarterly Financial
Status Report for the Quarter Ended September 30, 2006." December 19, 2006.
v
P: \ I 70005 \ 17006ChuiDFinRuw IReport \ Bibliogl"llphy_Mc
15-33
Chula Vista Financial Review
April 12, 2007
75, Director of FinancefTreasurer. Council Agenda Statement "Report comparing
General Fund reserve levels with the 18 cities within San Diego County and
other cities of comparable size." December 12, 2006.
76. "Economic Development Element" City ofChula Vista General Plan.
77. Economics Research Associates. "Fiscal Impact Analysis of the General Plan
Update." January 2005.
78. Ed Van Eenoo, Director of Budget and Analysis. City of Chula Vista Office of
Budget & Analysis. Memorandum to Department Heads. "Preliminary Fiscal
Year 2008 Baseline." December 4, 2006.
79. Ed Van Eenoo, Director of Budget and Analysis. Office of Budget and Analysis.
Memorandum to Jim Sandoval, Director of Planning and Building. "FY 2007
Budget Changes." March 28, 2006.
80. Ed Van Eenoo, Director of Budget and Analysis. City of Chula Vista Office of
Budget & Analysis. Memorandum to Jim Sandoval, Director of Planning.
"Planning Revenue Analysis." March 9, 2006.
81. Growth Management Oversight Commission. "2006 Questionnaire (Review
Period 7(1(04-6(30(05 and Five Year Forecast)."
82. James D. Sandoval, Director of Planning and Building. City of Chula Vista
Department of Planning and Building. Memorandum to Ed Van Eenoo, Director
of Budget & Analysis. "Planning & Building Department 2007 Budget" March
23, 2006.
83. James D. Sandoval, Director of Planning and Building. City of Chula Vista
Department of Planning and Building. Memorandum to Maria Kachadoorian,
Director of Finance. "Planning and Building Department Budget" March 10,
2006.
84. Jim Thompson, Interim City Manager. Memorandum to Honorable Mayor and
Council. "Fiscal Year 2007-2008 Budget Projections." February 5, 2007.
85. Jim Thomson, Interim City Manager. City of Chula Vista City Manager's Office.
Memorandum to Honorable Mayor and Council. "Fiscal 2006-07 Budget
Contingency Plan Summary." January 4, 2007.
86. Jim Thomson, Interim City Manager. City of Chula Vista City Manager's Office.
Memorandum to Department Heads. "Budget Update and Contingency Plan
Implementation Guidelines." November 21, 2006.
VI
P: I 170005 \ 17006ChuwFinRllW IReport I Bi/lliography.doc
15-34
Chula Vista Financial Review
April ]2, 2007
87. Jim Sandoval, Director of Planning and Building. City of Chula Vista Department
of Planning and Building. Memorandum to Jim Thomson, Interim City Manager,
"Planning & Building Department Budget." December 1, 2006.
88. Jim Sandoval, Planning and Building Director. City of Chula Vista Department of
Planning and Building. Memorandum to Jim Thompson, Interim City Manager.
"Directed Fiscal year 07 Planning and Building Budget Cuts." November 27,
2006.
89. John E. Bartel. Bartel Associates, LLC. "City of Chula Vista Miscellaneous Plan:
CalPERS Actuarial Issues - 6/30/05 Valuation." December 7, 2006.
90. John E. Bartel. Bartel Associates, LLC. "City of Chula Vista Safety Plan: CalPERS
Actuarial Issues - 6/30/05 Valuation." December 7, 2006.
91. John McCann, Deputy Mayor. City of Chula Vista. Memorandum to Dave
Rowlands, City Manager. "2007 Fiscal Year Budget." May 30,2006.
92. Maria Kachadoorian, Director of Finance/Treasurer. Memorandum to Honorable
Mayor and City Council via Jim Thompson, Interim City Manager. "FY 2005-
2006 Annual Financial Status Report." October 27, 2006.
93. Maria Kachadoorian, Director of FinancejTreasurer and Ed Van Eenoo, Director
of Budget and Analysis. Council Information Item to Honorable Mayor and City
Council via Jim Thomson, City Manager. "TaxpayersAdvocate.org Report' A
Fiscal Analysis of the City of Chula Vista.''' October 27, 2006.
94. Maria Kachadoorian, Director of FinancejTreasurer. Memorandum to Honorable
Mayor and City Council via Jim Thomson, City Manager. "Voice of San Diego
July 31, 2006 Opinion Article." August 3,2006.
95. Maria Kachadoorian, Director of FinancejTreasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via Jim
Thomson, Interim City Manager. "Budget Line Item Analysis." June 16, 2006.
96. Maria Kachadoorian, Director of Finance/Treasurer, City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager and Jim Thompson, Assistant City
Manager. "Quarterly Financial Status Report for the Quarter Ended March 31,
2006." May 15, 2006.
97. Maria Kachadoorian, Director of FinancejTreasurer. City of Chula Vista Finance
Department, Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager and Jim Thomson, Assistant City
Manager. "Quarterly Financial Status Report for the Quarter Ended December
31,2005." February 28, 2006.
vii
P: \ 17000s \ llOO6ChulaFinR vw \Reporr \ Bibliography.doc
15-35
Chula Vista Fi nancial Review
April 12, 2007
98. Maria Kachadoorian, Director of Finance/Treasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager and Jim Thomson, Assistant City
Manager. "Quarterly Financial Status Report for the Quarter Ended September
30, 2005." October 18, 2005.
99. Maria Kachadoorian, Director of Finance/Treasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager. "FY 2004-2005 Annual Financial Status
Report." October 18, 2005.
100. Maria Kachadoorian, Director of Finance/Treasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager. "General Fund Quarterly Fiscal Status
Report for the Quarter Ended March 31, 2005." April 19, 2005.
101. Maria Kachadoorian, Director of Finance/Treasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager. "General Fund Quarterly Fiscal Status
Report for the Quarter Ended December 31, 2004." February 1, 2005.
102. Maria Kachadoorian, Director of Finance/Treasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager. "Quarterly Financial Status Report for the
Quarter Ended September 30, 2004." October 26, 2004.
103. Maria Kachadoorian, Director of Finance/Treasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager. "FY 2003-2004 Annual Financial Status
Report." October 19, 2004.
104. Maria Kachadoorian, Director of Finance/Treasurer. City of Chula Vista Finance
Department. Council Information to Honorable Mayor and City Council via
David D. Rowlands, Jr., City Manager. "Quarterly Fiscal Status Report for the
Quarter Ended March 31, 2004." April 28, 2004.
105. Maria Kachadoorian, Director of Finance/Treasurer. Council Information to
Honorable Mayor and City Council via David D. Rowlands, Jr., City Manager.
"Quarterly Fiscal Status Report for the Quarter Ended December 31, 2003."
January 27, 2004.
106. Maria Kachadoorian, Director of Finance. Council Information to Honorable
Mayor and City Council via David D. Rowlands, Jr., City Manager. "FY 2002-
2003 Annual Financial Status Report." October 22, 2003.
viii
P: \ 17000s \ 17006ChulaFinRvw \Report \ Bibliography_dor
15-36
Chula Vista Financial Review
April 12, 2007
107. Maria Kachadoorian, Director of FinancejTreasurer. Council Information to
Honorable Mayor and City Council via David D. Rowlands, Jr., City Manager.
"Quarterly Financial Status Report for the Quarter Ended September 30, 2003."
October 22, 2003.
108. Maria Kachadoorian, Director of FinancejTreasurer. Council Information to
Honorable Mayor and City Council via David D. Rowlands, Jr., City Manager.
"Quarterly Fiscal Status Report for the Quarter Ended March 31, 2003." April 22,
2003.
109. National Coalition on Health Care. "Facts on Health Care Costs."
110. Office of Budget & Analysis. "Public Facilities Development Impact Fee." March
2006.
111. Office of Communications. "Strategic Plan Presentation." 2004.
112. "Owner Participation Agreement," signed by Stephen Padilla, Chairman and Uri
Feldman, Vice President on May 18 and Ann Moore, Agency Attorney on June 1,
2005.
113. Planning and Building Department. "Report of Permits Issued from 7/1/1996 -
6/30/1997." March 6, 2007.
114. Planning and Building Department. "Final Report City of Chula Vista Planning
and Building User Fee Studies." January 18, 2007.
115. Planning and Building Department. "Appendix 2: Building Fee Schedules."
January 18, 2007.
116. Planning and Building Department. "City of Chula Vista Planning & Building
Fee Studies." January 2007.
117. Planning & Building Department. "Strategic Plan & Work Program Year 2006-
2010." August 16, 2006.
118. Public Works Operations Department "Strategic Business Plan." January 10,
2006.
119. "Proposed City of Chula Vista Economic Development Strategy [EDS]." March 4,
2003.
120. Redevelopment Agency of Chula Vista. "Basic Financial Statements and
Independent Auditor's Reports for the year ended June 30, 2006." October 26,
2006.
IX
P: \ 17000s \ 17006ChulllFinRvw \Report \ Bibliogmphy.doc
15-37
Chula Vista Financial Review
April ]2, 2007
121. Redevelopment Agency of Chula Vista. "Five Year Implementation Plan 2005-
2009." Adopted July 18, 2006.
122. Redevelopment Agency of Chula Vista. "Basic Financial Statements and
Independent Auditor's Reports for the year ended June 30, 2005." September 30,
2005.
123. Redevelopment Agency of Chula Vista. "Basic Financial Statements and
Independent Auditors' Reports for year ended June 30, 2004." October 1, 2004.
124. Redevelopment Agency of Chula Vista. "Basic Financial Statements and
Independent Auditors' Reports for year ended June 30, 2003." October 3, 2003.
125. Redevelopment Agency of Chula Vista. "Basic Financial Statements and
Independent Auditors' Reports for the year ended June 30, 2002." October 11,
2002.
126. Redevelopment Agency of Chula Vista. "Component Unit Financial Statements
and Independent Auditors' Report for the year ended June 30, 2001." September
21, 2001.
127. Redevelopment Agency of Chula Vista. "Report on Audited Component Unit
Financial Statements for the year ended June 30, 2000." October 6, 2000.
128. Redevelopment Agency of Chula Vista. "Report on Audited Component Unit
Financial Statements for the year ended June 30,1999." October 1,1999.
129. Redevelopment Agency of Chula Vista. "Report on Audited Component Unit
Financial Statements for the year ended June 30, 1998." October 9,1998.
130. Redevelopment Agency of Chula Vista. "Annual Financial Report, June 30,
1997." November 21, 1997.
131. Redevelopment Agency of Chula Vista. "Annual Financial Report, June 30,
1996." November 8, 1996.
132. Robert W. Powell, Assistant City Manager. Council Information to Honorable
Mayor and City Council via David D. Rowlands, Jr., City Manager. "Quarterly
Fiscal Status Report for the Quarter Ended December 31, 2002." February 18,
2003.
133. Robert W. Powell, Assistant City Manager. Council Information to Honorable
Mayor and City Council via David D. Rowlands, Jr., City Manager. "Quarterly
Fiscal Status Report for the Quarter Ended September 30, 2002." October 22,
2002.
x
P:\1700()s \17006ClrlliaFinRvw \Reporr\Bibliography_dcc
15-38
Chula 'V'ista Financial Review
April 12, 2007
134. Ron Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (Employer #195).
Annual Valuation Report as of June 30, 2001." October 16, 2002.
135. Ron Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (Employer #195)."
September 24, 2001.
136. Ron Seeling. CalPERS Actuarial & Employer Services Division. "SAFETY PLAN
OF THE CITY OF CHULA VISTA (Employer #195)." September 24, 2001.
137. Ron Seeling. CalPERS Actuarial & Employer Services Division. "SAFETY PLAN
OF THE CITY OF CHULA VISTA (Employer #195)." October 25, 2000.
138. Ron Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (Employer #195)."
October 25, 2000.
139. Ron Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (Employer #195)."
October 27, 1999.
140. Ron Seeling. CalPERS Actuarial & Employer Services Division. "SAFETY PLAN
OF THE CITY OF CHULA VISTA (Employer #195)." October 19, 1999.
141. Ron Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (Employer #195)."
December 15, 1998.
142. Ron Seeling. CalPERS Actuarial & Employer Services Division. "SAFETY PLAN
OF THE CITY OF CHULA VISTA (Employer #195)." December 15, 1998.
143. Ron Seeling. CalPERS Actuarial & Employer Services Division. "SAFETY PLAN
OF THE CITY OF CHULA VISTA." March 24, 1998.
144. Ron Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA." March 24,1998.
145. Ronald L. Seeling. CalPERS Actuarial Office. "MISCELLANEOUS PLAN OF
THE CITY OF CHULA VISTA (Employer #195) Annual Valuation Report as of
June 30, 2005." October 19, 2006.
146. Ronald L. Seeling. CalPERS Actuarial Office. "SAFETY PLAN OF THE CITY OF
CHULA VISTA (EMPLOYER #195) Annual Valuation Report as of June 30,
2005." October 4, 2006.
Xl
P: \ 170005 \ 17006ChulnFinRot(l \Report \Bi/Jliography.doc
15-39
Chula Vista Financial Review
April ]2, 2007
147. Ronald 1. Seeling. CalPERS Actuarial Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (EMPLOYER
#195) Annual Valuation Report as of June 30, 2004."October 7, 2005.
148. Ronald 1. Seeling. CalPERS Actuarial Employer Services Division. "SAFETY
PLAN OF THE CITY OF CHULA VISTA (EMPLOYER #195) Annual
Valuation Report as of June 30, 2004."October 7, 2005.
149. Ronald 1. Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (EMPLOYER
#195) Annual Valuation Report as of June 30, 2003." October 18, 2004.
150. Ronald 1. Seeling. CalPERS Actuarial & Employer Services Division. "SAFETY
PLAN OF THE CITY OF CHULA VISTA (EMPLOYER #195) Annual Valuation
Report as of June 30, 2003." October 18, 2004.
151. Ronald 1. Seeling. CalPERS Actuarial & Employer Services Division.
"MISCELLANEOUS PLAN OF THE CITY OF CHULA VISTA (EMPLOYER
#195) Annual Valuation Report as of June 30, 2002." June 14, 2004.
152. Ronald 1. Seeling. CalPERS Actuarial Employer Services Division. "SAFETY
PLAN OF THE CITY OF CHULA VISTA (EMPLOYER #195) Annual
Valuation Report as of June 30,2002." September 11, 2003.
153. Ronald 1. Seeling. CalPERS Actuarial Office. "SAFETY PLAN OF THE CITY OF
CHULA VISTA (EMPLOYER #195." October 16, 2002.
154. Salomon Smith Barney. "Redevelopment Agency of the City of Chula Vista:
$17,000,0002000 Tax Allocation Bonds (Merged Redevelopment Project)."
October 11, 2000.
155. Standard & Poor's Ratings Services. Letter to Maria Kachadoorian, Finance
Director. "City of Chula Vista, California, Certificates of Participation (SPUR)."
November 2, 2006.
156. Stone & Youngberg LLC. "$22,565,000 City of Chula Vista Community Facilities
District No. 12-1 (McMillan Otay Ranch Village Seven) 2005 Special Tax Bonds."
November 18, 2005.
157. Tanya Mannes. "Chula Vista Financial Study Draws a Rebuttal."
Taxpayersadvocate.org. February 8, 2007. <http://www.taxpayersadvocate.org>
158. Tanya Mannes. "Official Aims to Cut $10 Million in Budget," San Diego Union
Tribune. February 7, 2007. <http://www.signonsandiego.com>
Xll
P:\l7000s \17006ChuIaFi71Rvw \Report\Bibliogrnphy,doc
15-40
Chula Vista Financial Review
April 12, 2007
159. TaxpayersAdvocate.org. "A Fiscal Analysis of the City of Chula Vista, Chula
Vista-the Looming Fiscal Crisis." October 25, 2006.
160. Weidner Consulting, Inc. Strategic Business Plan. "General Services
Department." 2005.
161. Weidner Consulting, Inc. Strategic Business Plan. "City of Chula Vista Finance
Department." 2004.
162. Weidner Consulting, Inc. Strategic Business Plan. "Chula Vista Information
Technology Services Department." 1999.
163. Weidner Consulting, Inc. Strategic Business Plan. "Chula Vista Police
Department." 1999.
164. Zucker Systems. "Community Planning Assessment." April 2003.
165. Zucker Systems. "Charting of Planning, Building & Engineering Processes."
August 2000.
166. Zucker Systems. "Charting of Planning, Building & Engineering Processes,
Draft." June 1, 2000.
167. Zucker Systems. "Analysis of Building Division." January 2000.
XllZ
P: \ 170005 \ 17006Chulll FinRvw \Rr:port \ Bibliography.doc
15-41
ApPENDIX A:
BACKGROUND DATA
15-42
Economic 6-
Planning Systems
P"flIic FinMln'
[(,'(;1 blllt" ff1H1iJI!iJcs
Rt'jI/fHWI tn"",min
Lalld 1',,~ I'"j,'(y
Table of Contents
Appendix
Chula Vista Financial Review; EPS# 17006
Figure # Name
Figure A-1 Residential Building Permits
Figure A-2 Cumulative Residential Units and Population
Figure A-3 General Fund Revenues
Figure A-4 General Fund Expenditures
Figure A-5 Chart of General Fund Revenues and Expenditures
Figure A-6 Chart of General Fund Revenues and Expenditures
Figure A-7 Chart of Projected General Fund Revenues and Expenditures
Figure A-8 Redevelopment Agency Revenues
Figure A-9 Redevelopment Agency Expenditures
Figure A-10 Personnel Positions and Service Costs
Figure A-11 Additions to City Assets
Figure A-12 PERS Required Contribution Rates
Economic & Planning Systems, Inc. 4/6/2007
P:\ 170005\ 17006ChulaFinRvwlData ICV8udginfoD31407
15-43
Figure A-1
Residential Building Permits
Chula Vista Financial Review; EP$ #17006
Agency 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 (1J 2007 2008 2009 2010 2011
GMOC 914 1,028 1,339 2,505 2,618 3,525 2,250 3,143 3,300 1,654 1,180 1,761 2,530 2,095 2,690 2,675
OBA 914 1,028 1,339 2,505 2,616 3,525 2,250 3,143 3,300 1,654 1,180 1,601 1,873 1,732
(1) 1996-2006 residential building permits use actual figures and 2007-2011figures are forecasted using GMOC.
Sources: Growth Management Oversight Commission, Office of Budget Analysis, Economic & Planning Systems, Inc.
Historical and Projected Residential Permits
~ 4,000
en 3,500
I
.j>. 3,000
.j>.
2,500
2,000
1,500
1,000
500
0
PJIo ~ PJ'b PJ<?> !::)<:) !::)"
"os "os "os "os fS fS
!::)<1,. !::)~ ~ !::)~ !::)Io
fS fS <1,.~ fS fS
IEililOBA .GMOCI
~
fS
!::)'b
<1,.~
!::)<?>
<1,.~
,,<:)
<1,.<:)
,,"
f>
Economic Planninll Sy.nllms, Inc. 4/612007
P.1170oos117()/)(jChulaFIrIRvwlDlllaICVBudg/llfoOJ1407
~
CJ1
I
~
CJ1
Figure A-2
Cumulative Residential Units and Population
Chula Vista Financial Review; EPS #17006
Chula Vista 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 (1) 2007 (2) 2008 2009 2010 2011
Units (1) 54,438 55,258 56,250 57,344 59,333 61,502 64,437 67,360 70,067 73,115 75,640 77,401 79,931 82,026 84,916 87,791
Population (2) 151,300 154,500 159,500 164,200 173,556 181,453 191,033 200,378 208,675 216,694 223,423 228,752 236,408 242,747 251,492 260,192
Annual Pop. Growth 2.1% 3.2% 2.9% 5.7% 4.6% 5.3% 4.9%. 4.1% 3.8% 3.1% 2.4% 3.3% 2.7% 3.6% 3.5%
Sources: Chula Vista CAFR. Department of Finance, Economic & Planning Systems, Inc.
(1) 1996-2006 residential unit numbers use actual DQF figures. The 2007-2011 figures are calculated using GMOC forecasted residential penn its from Table 1.
(2) 1996-2006 use actual DaF population figures and 2007-2011 figures are forecasted using the amount of GMaC residential permits and DaF 2006 person per househ<lld figure of 3.026.
EconomlcPlsrm;"gSysfems,lnc,418120D7
P:l/70ODs\ 17006ChuJaFInRvwlDatalCVBudgtnfo031 407
Figure A.3
General Fund Revenues
Chula Vista Financial Review; EPS #17006
Functions/ Programs 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Prooertv Tax
Property Tax $8212625 $8342.059 $8 739 780 $9378123 $10262227 $11 525 823 $13068820 $14649804 $16356953 $18134869 $22192789
Total $8,212,625 59,342,059 58,739,780 $9,378,123 $10,262,227 511,525,823 513,068,820 $14,649,804 $16,356,953 $18,134,869 522,192,789
Other local Taxes
Sales Tax $12,301,465 $12,891,662 $14,182,954 $15,051,971 $16,952,378 $18,820,155 $18,812,328 $19,612,779 $21,421,090 $23,600,000 $26,715,515
Franchise Fees $2,169,052 $2,133,765 $2,442,580 $2,506,858 $4,771,768 $7,316,343 $11,195,480 $4,301,710 $7,820,569 $9,837,800 $9,492,759
Utilities Users Tax $2,756,337 $2,921,407 $3,101,835 $3,452,338 $3,655,093 $3,931,223 $4,015,262 $4,770,817 $5,622,545 $6,579,578 $6,363,446
Business License Tax $768,991 $753,433 $765,085 $876,991 $865,005 $1,081,811 $1,108,566 $1,085,986 $1,063,847 $1,185,187 $1,234,912
Transient Occupancy Tax $1,337,981 $1,445,351 $1,684,156 $1,734,852 $1,990,855 $2,153,060 $2,051,203 $2,024,366 $2,159,678 $2,268,944 $2,336,204
Real Property Transfer Tax $248182 $329 006 $411802 $517 577 $700585 $882413 $1 206059 $1 359756 $1 989898 $2439190 $2122860
Total $19,582,008 $20,474,624 $22,588,412 $24,140,587 $28,935,684 $34,185,005 $38,388,898 $33,155,414 $40,071,627 $45,910,699 $48,265,696
Licenses and Permits
Licenses $52,119 $63,020 $62,145 $69,697 $98,895 $93,276 $96,398 $109,162 $115,080 $105,408 $117,381
Dev/lmprovement Permits $1,406,447 $1,703,847 $1,821,583 $3,167,891 $3,214,904 $4,052,257 $3,101,806 $4,186,441 $4,690,902 $3,210,092 $2,697,584
Regulatory Permits $204,380 $207,326 $224,635 $241,820 $241,264 $246,853 $260,441 $273,691 $261,786 $334,210 $401,576
~ Other Permits 1Q 1Q 1Q .u...m $2398 $2139 1Q
CJ'1 Total $1,662,946 51,974,193 $2,108,363 $3,480,721 53,557,461 54,394,525 $3,458,645 $4,569,294 $5,067,768 53,649,710 53,216,541
I
"'" Fines Forfeitures Penalties
0>
Community Appearance Penalties $90,829 $64,621 $180.790 $329,550 $312,747 $249,031 $259,780 $242,795 $197,942 $458,749
law Enforcement Penalties $125.420 $147,277 $160,528 $181,774 $214,219 $177,086 $157,988 $176,629 $148,739 $168,900
Parking Penalties $198,577 $180,118 $183,138 $240,885 $230,625 $316,287 $302,578 $344,756 $273,171 $307,647
Other Penalties $186762 $195287 $196181 $179 052 $139668 $178127 $202 591 $204333 $205049 $208 893
Total $570,217 5601,588 5587,303 5720,637 5931,261 $897,259 $920,531 5922,937 5968,513 $824,901 51,144,189
Use of Monev & Prooertv
Investment Earnings $638,252 $909,018 $1,698,539 $1,076,432 $1,856,461 $2,795,157 $1.831,324 -$238,982 $1,044,926 $279,277
Sales of Real Property $22,816 $343,345 $19,318 $276,132 $64,760 $50,569 $1,184 $18,179 $123 $361
Sales of Personal Property $160 $400 $100 $877 $570 $21,306 $25,555 $6,627 $13,742 $11,182
Rentalllease of Equipment $81,046 $77,873 $62,493 $65,016 $86,029 $81,226 $83,522 $122,819 $137,472 $123,365
Rental/lease of land and Space $80,897 $345,058 $337,449 $354,238 $357,220 $381,504 $378,802 $416,185 $423,664 $444,915
Rental/lease of Buildings $182034 $204 342 $223 265 $318128 $297 531 $265 920 $421121 $512236 $435460 $638 821
Totals 51,258,403 $1,005,205 51,880,036 52,341,164 $2,090,823 $2,662,571 53,595,682 52,741,508 $837,064 $2,055,387 51,497,921
Revenues from Other Aaencies
Sales Tax $353,270 $370,281 $435,991 $463,871 $537,779 $592,875 $573,304 $600,308 $655,051 $720,941 $777,551
State Grants $950,571 $987,039 $431,385 $381,898 $1,314,803 $774,360 $841,248 $1,565,194 $821,142 $797,928
State Tax Sharing $179,520 $180,009 $177,311 $187,662 $194,151 $210,796 $216,868 $233,672 $250,606 $275,999
Motor Vehicle License Fees $6,048,901 $6,539.413 $7,245,046 $8,079,382 $9,213,568 $10,252,818 $11,007,909 $9,137,716 $13,941,204 $18,354,839
State Subvention-Booking Fees $0 $0 $0 $269,192 $269,192 $269,192 $269,192 $269,192 $269,192 $305,049
State Reimbursements $3,405 $37,837 $50,556 $29,573 $5,573 $3,245 $2,926 $5,428 $4,485 $773,879
Federal Grants $1,111,793 $1,663,599 $1,837,613 $2,757,141 $2,470,840 $2,743,760 $2,554,912 $2,617,845 $2,215,218 $2,656,964
Federal Reimbursements $22,417 $29,704 $58,959 $22,328 $66,921 $115,208 $91,615 $49,274 $83,467 $97,138
Other Agency Grants $50,000 $12,500 $40,996 $31,600 $17,082 $56,177 $105,290 $115,286 $108,467 $46,110
Other Agency Revenue 1Q 1Q 1Q $613500 $670 551 $883 440 $865 992 $955 276 $1 145566 $1 330798
Totals $6,840,471 $8,736,888 $9,886,092 $10,305,737 $12,910,055 514,815,556 $15,882,300 $16,556,260 $15,603,934 519,560,288 525,416,255
Ecooomk Planning Sysl8ms, Inc. 41812007 P"1I7000s117oo6ChulaFinRvw'Data\C VSudgitJfo031407
Figure A-3
General Fund Revenues
Chula Vista Financial Review; EPS #17006
Functionsl Programs 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Charaes for Services
Zoning Fees $214,093 $224,778 $267,624 $763,976 $1,220,130 $1,941,654 $2,359,485 $7,966,767 $7,539,149 $8,162,093
Subdivision Fees $420,652 $517,345 $636,860 $10 $21 $0
Document Fees $50,638 $58,727 $96,071 $109,931 $88,252 $28,575 $25,797 $24,904 $27,698 $45,301
Plan Check Fees $1,173,887 $1,320,999 $2,635,746 $2,226,197 $2,607,829 $1,115,341 $1,693,248 $1,614,866 $1,760,972 $1,951,512
Inspection Fees $467,726 $421,332 $580,950 $1,187,545 $1,709,384 $1,378,983 $1,550,483 $109,826 $124,098 $168,880
Filing Fees $126,547 $93,835 $59,037 -$1,011 $432,531 $198,545 $45,285 $0 $228 $0
Development Agreement Fees $529,904 $950,572 $1,790,019 $2,000,665 $2,247,120 $2,627,890 $3,158,867 $0 $0 $0
Other Development Fees $13,251 $87,914 $78,726 $42,693 $141,987 $65,792 $122,186 $38,647 $9,152
Animal Shelter Contracts $5,540 $4,518 $3,640 $7,949 $8,075 $8,435 $7,359 $5,540 $6,655 $8,930
Dispatch Contracts $44,832 $45,068 $47,608 $40,717 $65,412 $17,160
Information Systems Services $126,839 $127,561 $114,371 $52,951 $34,345 $30,334 $18,416 $12,671 $16,242 $12,114
Services to the Port District $742,140 $715,552 $931,700 $732,957 $851,433 $864,006 $1,053,659 $919,332 $953,058 $544,810
Youth Center Utilities Reimb $16,921 $14,746 $12,389 $12,628 $6,606 $34,698 $24,246 $35,304 $39,144 $35,181
Recreation Program Fees $458,287 $384,685 $396,619 $439,421 $509,664 $548,526 $598,324 $736,773 $757,219 $836,950
~ Class Admission Fees $26,888 $25,168 $92,693 $196,581 $152,723 $180,781 $241,980 $277 .439 $309,698 $360,164
C11 Referral Fees $26,214 $31,523 $49,018 $61,260 $63,020 $51,105 $53,466 $44,018 $41,589 $68,902
I Staff Services Reimb $493,720 $682,629 $767,629 $898,276 $1,192,534 $1,700,396 $1,729,211 $1,684,792 $1,869,142 $1,999,799
~ Fees for Other Services $290 232 $276 100 $328 432 $558 126 $816769 $679 064 $721 734 $924 925 $1028870 $1 023 739
..... Totals $2,801,116 $5,228,311 $5,983,052 58,889,132 59,330,872 $12,147,835 $11,471,285 $13,403,746 514,395,804 514,482,914 515,218,375
Other Revenue
Gas Tax Reimb $0 $1,888 $0
DtF Reimbursements $585,293 $461,591 $326,742 $520,381 $569,103 $947,979 $1,552,538 $1,379,332 $1,620,897 $1,359,035
Transit Reimbursements $0 $286,164 $409,543 $332,302 $489,480 $552,983 $719,966 $791,975 $844,585 $762,460
Redevelopment Agency Reimb $1,612,012 $1,515,233 $1,688,694 $2,028,005 $2,709,784 $3,181,408 $3,056,624 $3,380,363 $3,933,859 $4,253,714
Open Spacel Assess Dist Reimb $0 $414,391 $512,241 $555,000 $771,195 $882,587 $1,042,910 $1,345.418 $1,660,065 $1,822,198
CIP Reimb $1,233,446 $1,055,576 $929,756 $1,162.478 $1,929,333 $2,243,742 $2,600,141 $3,197,833 $3,870,831 $4,333,556
CDBG/HOME Reimb $0 $383,450 $398,894 $584,916 $542,282 $503,942 $637,652 $741,080 $1,044,783 $1,567,320
Other City Funds Reimb $1,600,758 $182,697 $164,915 $342,117 $518,429 $447,437 $603,185 $802,028 $995,498 $2,767,452
Assessments $0 $23,498 $9,897 $3,874 $3,700 $3,695 $3,533 $3,865 $3,689 $3,693
Collection Charges $81,540 $75,267 $79,275 $27,177 $15,157 $74,360 $121,276 $92,863 $183,391 $150,673
Sales of Goods $411 $0 $0 $0 $0 $758 $50,103 $55,026 $51,440 $57,385
Other Revenues $1504174 $540195 $1 149507 $2750619 $1666579 $2488383 $3 143 052 $3942 909 $3229 578 $2489 702
Totals $9,019,972 $6,617,634 $4,938,062 $5,669,464 58,306,869 $9,216,930 $11,327,274 $13,530,980 515,732,692 $17,438,616 $19,567,188
Transfers In
Gas Tax Fund $2,329,827 $2,322,066 $2,334,775 $2,260,000 $2,365,320 $2,559,533 $2,559,533 $3,102,012 $3,096,211 $3,858,092
Fed Aid to Urb $0 $0 $0 $0 $332,154 $0 $0
T rafflc Signal $0 $0 $0 $0 $50,000 $0 $0
Workers Camp Fund $447,045 $0 $0 $0
Traffic Safety $143,516 $141,802 $279,489 $385,182 $300,000 $417,768 $460,301 $686,015 $633,645 $527,984
Asset Seizure Fund $114,068 $249,836 $65,000 $45,000 $334,710 $0 $63,620 $0 $200,000 $0
CA Library Service $276,636 $165,533 $258,199 $145,682 $44,500 $74,509 $82,126 $71,875 $92,112 $74,612
Public Library $99,500 $92,232 $191,598 $280,285 $288,850 $281,187 $179,535 $88,956 $84,276 $70,647
EconomicPla/lflingSystems,/nc.4/8I2oo7 P,\17000sI17006ChuJaFinRvwID",,,ICVa,,dginfo031407
Figure A-3
General Fund Revenues
Chula Vista Financial Review; EP5 #17006
Functionsl Programs 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Disaster Assist $0 $0 $123,000 $0 $0 $0 $0 $323,140 $0 $0
Sewer Service Rsrv $3,225,028 $3,559,046 $3,563,356 $3,795,745 $4,362,849 $6,019,077 $6.485,503 $7,376,486 $7,961,050 $8,581,664
Strom Drain Rev $120,384 $127,083 $130,179 $236,015 $299,228 $413,157 $525,331 $700,227 $996,694 $1,357,355
CV Hsng Authority $0 $0 $0 $147,000
CDSG $0 $0 $0 $32,900 $0 $0 $232,235
Central Garage $0 $0 $25,000 $25,000 $27,500 $29,562 $31,188
Equipment Rplcmnt $2,400,000
Central Stores $0 $0 $0 $0 $15,000 $15,000 $1,000,000
TransiUCVT Fund $0 $0 $0 $119,767
03 Ref COP Fund $2,250,000 $0 $0 $0
PFDIF- Civic Center $0 $0 $0 $0 $0 $1,030,387 $0
PO Facility Remdl $0 $0 $0 $245,426 $0 $0 $0 $447,428 $0 $0
Corp Yard Relocate $0 $0 $0 $189,034 $0 $0 $0 $120,160 $334,546 $0
Lib East Territory $0 $0 $0 $0 $0 $288,262 $2,154,748
Fire Sup Sys Expn $0 $0 $0 $0 $0 $475,224 $0
RDA SFrrC I $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $385,443 $385.443 $385.443 $15,000
CIP Fund $0 $0 $5,205,000 $0 $0 $797 $0
~ C1P wi fiscal agent $391,311
U1
I Bike Facilities Fd $0 $0 $0 $31,734
""" Swr Facility Repl $0 $0 $82,990 $281,079
00 Parking Meter Fund $50,000 $50,000 $35,000 $35,000 $0 $0
Special Sewer Fund $0 $18,290 $0 $0 $50,000 $0
CFD 07M-EL Woods $0 $0 $0
CFD 08M-Vlg 6 MM/OR $0 $0 $0
CFD 09M- OR Vlg II $0 $0 $0
BECA Corporation $0 $0 $0 $307 $0 $0
COBG Hsg Prgm $0 $0 $0
Low & Mod lnc Hsng $0 $0 $16,590
Open Space District 4 $0 $0 $0
PFOIF Fire $0 $293,000 $31,262
PFDIF $0 $0 $0
RDA TC 1/ $0 $0 $0
Public Liability Trust $156,000 $400,000 $0
Unemployment Insurance $0 $0 $25,503
Las Flores Assess $0 $141,136 $0
Other Funds $1 658271 $125616 $198739 $16595
Totals $6,186,131 $8,188,230 $7,700,640 $7,267,690 $7,632,676 $8,060,457 $15,010,231 $13,496,337 $13,726,396 $15,706,199 $21,291,011
General Fund Total $56,133,889 $61,168,732 $64,411,740 $72,193,255 $83,957,928 $97,905,961 $113,123,666 $113,026,280 $122,766,751 $137,763,583 $157,809,965
Sources: MuniCast (03-20-07), FY 2007 Adopted Budget Update, FY '04 & '05 Adopted Budget Vol. I, FY '00-01 Adopted Budget, FY '99-00 Adopted Budget.
EconomioPlanningSyst"ms,lflU.4J812007
P:\17000s\17006Chu/aFhlRvw\DataICVBlIdginfoOJ1407
Figure A-4
General Fund Expenditures
Chula Vista Financial Review; EPS #17006
Functionsl Programs 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Leaislative and Administration
City Council $380,298 $384,869 $386,238 $427,298 $464,134 $507,754 $541,594 $716,351 $940,902 $1,177,743 $1,513,721
Boards and Commissions $35,074 $35,814 $3,350 $31,154 $3,005 $4,192 $8,964 $6,759 $7,101 $4,837 $5,995
City Attorney 1,037,706 $948,690 $830,290 $1,042,314 $1,122,987 $1,201,620 $1,560,672 $1,662,470 $2,071,101 $2,008,371 $2,444,294
City Clerk $249,961 $223,899 $207,533 $387,302 $370,506 $517,128 $629,133 $668,859 $800,545 $870,782 $1,153,689
Administration $981,780 $869,962 $949,916 $1,066,884 $2,347,135 $2,882,289 $3,505,693 $5,437,290 $4,754,977 $4,911,195 $3,921,934
Management & Information $797,470 $742,588 $774,906 $1,335,157 $1,704,658 $2,178,672 $2,770,009 $2,979,419 $3,159.711 $3,427,130 $4,014,506
Human Resources $2,643,251 $2,503,969 $2,156,343 $2,770,528 $2,360,617 $2,568,973 $4,516,488 3,205,628 $3,796,945 $3,961,465 $5,110,626
Finance $1,354,048 $1,317,897 $1,447,874 $1,614,124 $1,871,512 $2,051,558 $2,078,252 $2,309,412 $2,449,968 $2,568,824 $2,974,595
Non Departmental $148,974 -$659,943 $736,424 $1,613,367 -$130,713 $3,603,542 $5,311,468 $9,398,676 $4,136,247 $3,172,232 $5,472,116
Total 57,628,562 16,367,745 17,492,874 $10,288,128 110,113,841 115,515,728 120,922,273 $26,384,864 122,117,497 122,102,579 $26,611,476
Develooment & Maintenance Services
General Services $900 $0 $4,807,890 $13,172,220 $10,309,362
~ Community Development $2,285,059 11,924,054 1,328,638 $1,325,809 $1,463,041 $1,892,933 $2,220,258 $2,512,732 $3,162,834 $3.741,911 $3,944,663
en Planning & Building $2,908,870 $2,684,869 2,755,303 $3,923,974 $4,914,868 $5,577,760 $6,866,918 $7.785,878 $9,125,870 $9,782,397 $10,693,725
I Engineering 10 $9,377,811 $10,254,124 -$839 $7,096,250
./>0
CO Public Works Operation $10,734,719 $10,665,860 11,070,424 $14,351,591 $16,538,617 $19,516,242 $23,160,640 $16,267,336 $14,906,954 $18,693,366 $19,635,280
Total 115,928,648 $15,274,783 $15,154,365 119,601,374 $22,916,526 $26,986,935 $32,248,716 135,943,757 142,257,672 $45,389,055 $51,679,280
Culture & Leisure
Library $3,684,479 $3,686,905 $3,873,056 $6,501,979 $5,500,634 $6,355,834 $6,900,255 $7,630,165 $7,513,643 $8,929,753 $9,680,387
Recreation $5,043,472 $5,187,435 $0 $2,762,900 $3,618,944 $4,197,104 $3,861,033 $3,846,337 $4,308,327 $5,178,954
Nature Center $0 -$187 $851,496 $912,945 $995,407 $1,031,090
Total 18,727,951 18,874,340 13,873,056 16,501,979 18,263,534 19,974,778 111,097,172 $12,342,694 112,272,925 114,233,487 115,890,431
Public Safetv
Police $18,311,865 19,600,759 $20,725,683 $21,754,962 $24,236,995 26,583,207 29,269,841 $33,448,840 $37,152,174 $42,544,921 $45,340,398
Fire $7,359,668 7,657,753 $7,768,328 $7,984,623 $8,322,527 $8,865,914 10,140,026 $10,920,654 $14,307,475 $17,925,475 $21,305,375
Total 125,671,533 $27,258,512 $28,494,011 129,739,585 132,559,522 $35,449,121 $39,409,867 144,369,494 $51,459,649 $60,470,396 $66,645,773
Subtotal $57,956,694 157,775,380 155,014,306 $66,131,066 $73,853,423 187,926,562 $103,678,028 $119,040,809 1128,107,743 1142,195,517 $160,826,960
Sources; Muni cast (03-20-07). FY 06-07 Adopted Budget Valli, FY 04&05 Adopted Budget Valli, FY 02 & 03 Adopted Budget, FY 00-01 Adopted Budget, FY 99-00 Adopted Budget, FY 96-99 Proposed Budget,
FY 97-98 Proposed Budget, Economic & Planning Systems, Inc.
EconomicPlanningSyslems,/nc.4I612oo7
P-lf7000s117006Chu/aFirlRvw\Dala\C VBIJdginlo031407
$170
$140
~
c.n In
I
c.n C
C) 0
.- $110
-
-
.-
E
$80
$50
Figure A-5
Chart of General Fund Revenues and
Expenditures
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
F General Fund Revenues -- General Fund Expenditures I
$170
~
en
I
en
~
$140
tJ)
c
~$110
-
.-
E
$80
Figure A-6
Chart of General Fund Revenues and
Expenditures
$50
2>\0 ~ 2>'0 2>OJ ~~ ~" ~~ ~~ ~~ ~~ ~\o ~
,,OJ ,,OJ ,,OJ ,,OJ ~ ~ f5 ~ ~ ~ ~ ~
~eneral Fund Expenditures III General Fund Revenues::: Expenditure Line I
~
01
I
01
,...,
$140
2007
$200
III
s:::
o
.-
-
-
.-
E $170
Figure A-7
General Fund Revenues and Expenditures
Projected
,
-
---
-
.
Moderate Revenue
Growth (6%) ___ .
---
.
,
---
,
.
---
-
,
---
.
,
---
,
,
,
2008
2009
2013
2010
2011
2012
Figure A-8
Redevelopment Agency Revenues
Chula Vista Financial Revlewj EPS #17006
Functions! Programs 1999 2000 2001 2002 2003 2004 2006 2006
budget projected adopted
Redevelooment Acencv Fund 600
Property Taxes $2,294,733 $2,390,425 $2,505,015 $2,218,854 $1,947,926 $3,978,613 $3,049,166 $2,650,245
Use of Money and Property $550,625 $204,276 $2,536,843 $6,003,571 $883,118 $416,235 $2,979,534 $1,175,060
Revenue from Other Agencies $0 $361,367
Development Impact Fees $0 $450 ($19) $6,874 $0 $0
Other Revenue $2,342,085 $2,921,966 $19,366,936 $283,336 $75,000 $620,131 $0 $50,000
Transfer In $402 367 $556000 $545000 $1 948 043 $2 496 609 ~ $625000 $135200
Total $6,589,810 $6,073,117 $25,315,142 $10,453,804 $5,402,653 $5,021,853 $6,653,700 $4,010,505
SWTax Acreement Funds 670
Property Taxes $0 $401,583 $557,237 $441,523 $773,019 $734,166 $814,429 $890,691
Use of Money & Property ~ $27559 536386 $45328 $33025 $4290 $11595 ~
Total $0 $429,142 $593,623 $486,851 $806,044 $738,456 $826,024 $891,306
Housinc proaram Funds 310
Property Taxes $1,183,503 $1,164,961 $1,405,176 $1,293,521 $1,433,039 $1,950,856 $1,644,412 $1,677,292
~ Use of Money & Property $437,653 $437,428 $400,731 $340,826 $316,209 $80,224 $109,822 $116,523
01 Revenue from Other Agencies $0 $0 $0 $0 $87,169 $87,011
I Charges for Service ($330)
01 Other Revenue $5,871 $85,228 $97,210 $103,717 $9,625 $44,196 $42,753 $181,442
W Transfer!n ~ $862020 $306613 5305 946 $323347 ~ $11000 l1Q.QQQ
Total $1,911,003 $2,549,637 $2,209,730 $2,044,010 $2,082,220 $2,081,608 $1,895,156 $2,072,268
Industrial Dev Authoritv Fund 725
Use of Money ~ !ill. lli1 ~ ~ = llQ1 ~
Total $0 $391 $441 $329 $430 $221 $351 $0
Debl SeNiee- RDA Funds 680
Property Taxes $2,383,789 $2,431,700 $3,072,817 $3,078,368 $3,538,327 $3,653,939 $3,507,080 $3,742,725
Use of Money & Properly $206,786 $336,407 $422,367 $382,284 $72,785 $184,185 $278,631 $231,000
Transfer In ~ $1926110 $1985026 $9885743 $3163938 $750300 $5347343 55394310
Total $2,590,575 $4,694,217 $5,480,210 $13,346,395 $6,775,050 $4,588,424 $9,133,054 $9,368,035
Total Revenues
Property Taxes $5,862,025 $6,388,669 $7,540,245 $7,032,266 $7,692,311 $10,317,574 $9,015,087 $8,960,953
Use of Money and Property $1,195,064 $1,006,061 $3,396,768 $6,772,338 $1,305,567 $685,155 $3,379,933 $1,523,198
Revenue from Other Agencies $0 $0 $361,367 $0 $0 $0 $87,169 $87,011
Development Impact Fees $0 $450 ($19) $0 $0 $6,874 $0 $0
Other Revenue $2,347,956 $3,007,194 $19,464,146 $387,053 $84,625 $664,327 $42,753 $231,442
Transfer In $686,673 $3,344,130 $2,836,639 $12,139,732 $5,983,894 $756,632 $5,983,343 $5,539,510
Charges for Service ($330)
Tolal $10,091,388 $13,746,504 $33.599,146 $26,331,389 $15,066,397 $12,430,562 $18,608,285 $16.342,114
Sour~es: FY 2006 & 2007 Adopted Budget, FY 2004 & 2005 Adopted Budget Vol. II, FY 2003 Adopted Budget, FY 2002 & 2003 Adopted Budget, FY 2000-2001 Adopted Budget
Economic PI""ning Sy$/ems. Inc. 41fi12007 P\ 17000,\ Il006CllulaFinRwNJatalCVBuriginfo031401
Figure A.9
Redevelopment Agency Expenditures
Chula Vista Financial Review; EPS #17006
Functionsl Programs 1999 2000 2001 2002 2003 2004 2006 2006
budget projected adopted
Redevelooment Aoencv Fund 600
Personnel Services $0 $2,074
Supplies and Services $2,218,976 $482,128 $662,175 $781,820 $763,355 $542,361 $655,109 $887,859
Other Expenses $4.413,984 $2,880,529 $4,724,112 $3,872,360 $3,176,751 $3,146,697 $5,892,276 $4,576,169
Capital $83,458 $31,714 $24,806 $1,300,000 $867,600
Transfers Out $0 $2,520,104 $2,023,020 $10,001,840 $4,305,722 $1,022,752 $3,794,600 $4,252,335
CIP Project Expenditures ~ $258 603 $823918 S4 933 616 $435291 $588186 $849189 5303000
Total $6,716,418 $6,175,152 $8,258,031 $20,889,636 $9,548,719 $5,299,996 $11,191,174 $10,019,363
SW Tax Aareement funds 670
Supplies and Services $2,990,334
Other Expenses ~ 5382430 $589801 $462447 $806 224 5740760 $826024 $953 076
Total $2,990,334 $382,430 $589,801 $462,447 $806,224 $740,760 $826,024 $963,076
Housino Prooram Funds 310
Personnel Services $0 $0 $0 $0 $1,065
~ Supplies and Services $35,275 $66,676 $29,539 $152,213 $151,050 $141,721 $200,362 $189,277
CJ1 Other Expenses $290,026 $422,759 $492,326 $807,036 $2,139,554 $783,191 $744,461 $892,645
I Capital $209,633 $137,186 $165,722 $156,713 $321,767 $124,495 $321,967 $321,967
CJ1 Transfer Out $0 $867,915 $557,508 $11,841 $486,965 $11,872 $15,509 $160,404
.j:> Non-CIP Project Expenditures ~ $87 169 $82661
Total $534,934 $1,494,536 $1,246,095 $1,127,803 $3,100,421 $1,061,279 $1,369,468 $1,646,954
Industrial Dev Authoritv Fund 725
Supplies and Services $0 $0 $0 $0 $985 $0 $985 $0
Other Expenses ~ ~ ~ ~ $1820 ~ $2152 ~
Total $0 $0 $0 $0 $2,805 $. $3,137 $0
Debt Service- RDA Funds 680
Supplies and Services $5,153 $18,367 $18,279 $18,276 $30,200 $18,397 $19,700 $24,950
Other Expenses $0 $4,609,487 $4,948,945 $7,021,809 $5,728,699 $14,837,271 $5,332,230 $5,466,403
Transfer Out 51 948044 $115000 $483618 $1993754 $2510255
Total $5,153 $4,627,854 $4,967,224 $8,988,129 $5,873,899 $15,339,286 $7,345,684 $8,001,608
Total Exoenditures
Personnel Services $0 $2,074 $0 $0 $1,065 $0 $0 $0
Supplies and Services $5,249,738 $567,171 $709,993 $952,309 $945,590 $702,479 $876,156 $1,102,086
Other Expenses $4,704,010 $8,295,205 $10,755,184 $12,163,652 $11,853,048 $19,507,919 $12,797,143 $11,888,293
Capital $293,091 $168,900 $190,528 $1,456,713 $1,189,367 $124,495 $321,967 $321,967
Transfers Out $0 $3,388,019 $2,580,528 $11,961,725 $4,907,707 $1,518,242 $5,803,863 $6,922,994
CIP Project Expenditures $0 $258,603 $823,918 $4,933,616 $435,291 $588,186 $849,189 $303,000
Non-CIP Project Expenditures ~ ~ ~ ~ ~ ~ $87169 $82 661
Total $10,246,839 $12,679,972 $15,060,161 $31,468,015 $19,332,068 $22,441,321 $20,736,487 $20,621,001
Sources: FY 2006 & 2007 Adopted Budget, FY 2004 & 2005 Adopted Budget Vol. II, FY 2003 Adopted Budget, FY 2002 & 2003 Adopted Budget, FY 2000-2001 Adopted Budget
EconnmicPliJtlmngSy.tems.lnc.4/6I2007
P:1170Q0slflooe;Cllul"FinRw/lDalaICVBud9infoOJ1401
Figure A-10
Personnel Positions and Service Costs
Chula Vista Financial Review; EPS #17006
Functionsl Programs 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Personnel Service Cost (1) $47,677,843 $44,486,785 $49,585,887 $52,834,707 $57,449,732 $66,574,000 $74,197,000 $85,407,000 $97,424,000 $113,081,000 $122,674,000
Annual Average Growth Rate -7% 11% 7% 9% 16% 11% 15% 14% 16% 8%
Permanent Positions 843 846 873 918 946 993 1,060 1,087 1,169 1,205 1,227
Positions per 1,000 Population 5.6 5.5 5.5 5.6 5.5 5.5 5.6 5.4 5.6 5.6 5.5
Cost Per Employee $56,565 $52,579 $56,813 $57,532 $60,717 $67,043 $69,981 $78,564 $83,332 $93,816 $99,960
(1) All personnel service cost include PERS.
~
Sources: FY 2006 & 2007 Adopted Budget Vol. I, FY 2004 & 2005 Adopted Budget Vol. I, FY 2002 & 2003 Adopted Budget. FY 2000-2001 Adopted Budget, FY 1999-2000 Adopted Budget, FY 1998-1999 Proposed Budget.
FY 1997-1998 Proposed Budget, FY 1996-1997 Proposed Budget
C11
I
C11
C11
General Fund Personnel Service Costs
$20,000,000
20%
$140,000,000
$120,000,000
15%
$100,000,000
10%
$80,000,000
5%
$60,000,000
0%
$40,000,000
-5%
$0
-10%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
1_ Personnel Service Cost (1) -+-Annual Average Growth I
EconomicPlanningSystems,/nc.4I612oo7
P-117000s117006ChulaFinRvwtDalsICVBudg/nfo031407
Figure A-11
Additions to City Assets
Chula Vista Financial Review
Fiscal Year Ending (1) 5-Year
Item 2002 2003 2004 2005 2006 Total
Land $4.8 $3.9 $6.6 $8.7 $2.5 $26.5
Construction in Progress 22.9 29.6 30.0 32.8 42.5 157.8
Buildings 0.1 27.5 1.0 77.2 105.8
Other Improvements 2.0 3A 5.7 4.0 15.1
Machinery and Equipment 3.9 3.5 3A 3.7 3.0 17.5
Infrastructure 11.7 153.9 60A 69.8 67.1 362.9
Total $43A $220A $104.8 $120.7 $1963 $685.6
(1) 2006 shows governmental activities; other years include business~type activities.
Sources: Comprehensive Annual Financial Reports 2002-2006, Notes to Financial Statements; Economic and Planning Systems, Inc.
Economic Planning Systems, Inc. 4/612007
P:\17000s\ 17006ChulaFinRvwIDatalCVBudginfo031407
15-56
Figure A-12
PERS Required Contribution Rates
Chula Vista Financial Review; EPS# 17006
Contribution
2002
Fiscal Year Ending
2003 2004
2005
2006
Public Safety
Employer (1l
Other (2)
Total
0.00% 0.00% 5.78% 24.47% 23.25%
9.00% 9.00% 9.00% 9.00% 9.00%
9.00% 9.00% 14.78% 33.47% 32.25%
0.00% 0.00% 12.02% 15.98% 20.15%
8.00% 8.00% 8.00% 8.00% 8.00%
8.00% 8.00% 20.02% 23.98% 28.15%
Miscellaneous
Employer (1)
Other (2)
Total
(1) Does not include additional City costs to repay Pension Obligation Bond.
(2) "Other" includes City funded employee share.
Sources: CalPERS Actuarial Valuation Reports
Economic Planning Systems, Inc. 4/812007
P:\17000s\17006ChulaFinRvwlData\CVBudginfo031407
15-57